jimmy fu
Jimmy Fu and Moog Case
Questions 1-2
Jimmy Fu- Considered for the director of financial analysis and planning
Jennifer Walter- Took the controller position from the position director of financial analysis and planning
Timeline
• March 18th, 2007 board of directors approved a three for two stock split of Class A and B common stock
• May and June 2007 Moog purchased 112,199 Class A shares on the open market at an average price of $29.70
• July 5th,2007 employees purchased 147,017 Class A shares by exercising employee stock options
(These shares were previously purchased at an average of $5.09 equal to the average exercise price)
• Between May and August 2007, shareholders elected to convert 11,545 Class B shares into class A shares
• Moog reported net income of 64 million for the year with an additional loss of 16.5 million for the change in currency and paid no dividends
• Febuary 21st, 2008 sold 2,875,000 shares Class A common stock at a price of $31. Net proceeds of 84.5 million that was used to pay down outstanding debt
• July 2008 employees purchased 342,695 Class A shares by exercising stock options. Purchased at average price of $5.35 per share
• 2008 Moog reported a net income of 81.345 million
• Early 2009 Jimmy Fu had an Interview with Moog Inc
1 The first change is the 3 for 2 stock split. For this I took the outstanding shares for Class A and B and multiplied them 1.5 and divided the par value by 1.5.
22,910,728 X 1.5= 34,366,092 1/1.5=.6667
2,794,982 X 1.5=4,195,000 1/1.5=.6667
This doesn’t have any affect on jimmy because even though he gets more shares the value of the shares decrease causing no change.
Next is Moog purchased 112,199 Class A shares @ 29.70 =3,332,310
Then subtracting this from the total Class A outstanding =31,033,782
This affects Jimmy because they are taking shares out of circulation so he has a larger percentage of the total.
Third we have the employee exercise of stock which they purchased 147,017 Class A
Questions 1-2
Jimmy Fu- Considered for the director of financial analysis and planning
Jennifer Walter- Took the controller position from the position director of financial analysis and planning
Timeline
• March 18th, 2007 board of directors approved a three for two stock split of Class A and B common stock
• May and June 2007 Moog purchased 112,199 Class A shares on the open market at an average price of $29.70
• July 5th,2007 employees purchased 147,017 Class A shares by exercising employee stock options
(These shares were previously purchased at an average of $5.09 equal to the average exercise price)
• Between May and August 2007, shareholders elected to convert 11,545 Class B shares into class A shares
• Moog reported net income of 64 million for the year with an additional loss of 16.5 million for the change in currency and paid no dividends
• Febuary 21st, 2008 sold 2,875,000 shares Class A common stock at a price of $31. Net proceeds of 84.5 million that was used to pay down outstanding debt
• July 2008 employees purchased 342,695 Class A shares by exercising stock options. Purchased at average price of $5.35 per share
• 2008 Moog reported a net income of 81.345 million
• Early 2009 Jimmy Fu had an Interview with Moog Inc
1 The first change is the 3 for 2 stock split. For this I took the outstanding shares for Class A and B and multiplied them 1.5 and divided the par value by 1.5.
22,910,728 X 1.5= 34,366,092 1/1.5=.6667
2,794,982 X 1.5=4,195,000 1/1.5=.6667
This doesn’t have any affect on jimmy because even though he gets more shares the value of the shares decrease causing no change.
Next is Moog purchased 112,199 Class A shares @ 29.70 =3,332,310
Then subtracting this from the total Class A outstanding =31,033,782
This affects Jimmy because they are taking shares out of circulation so he has a larger percentage of the total.
Third we have the employee exercise of stock which they purchased 147,017 Class A