Invite Manipulation? The cost method of accounting for investments often caused a lack of objectivity in reported income figures. With a large block of the investee’s voting shares‚ an investor could influence the amount and timing of the investee’s dividend distributions. Thus‚ when enjoying a good earnings year‚ an investor might influence the investee to
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SEAT NUMBER: ……….… ROOM: .………………. FAMILY NAME.………….....…………………………. This question paper must be returned. Candidates are not permitted to remove any part of it from the examination room. OTHER NAMES…………….…………………..…….. STUDENT NUMBER………….………..…………….. SESSION 2 EXAMINATIONS NOVEMBER 2012 Unit Code and Name: AFIN252‚ Applied Financial Analysis and Management Time Allowed: 3 hours plus 10 minutes reading time. Total Number of Questions: 50 Multiple Choice Questions plus 8 full response questions.
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Dividend Policy at FPL Group Inc. Because of FPL’s reluctance to increase its dividends and increased competition in the electric utility industry‚ Merrill Lynch’s utility analyst downgraded FPL Group Inc. Kate Stark‚ utility analyst at First Securities Corporation‚ wondered whether she should issue an updated report about stocks of FPL. We investigated the potential risks faced by FPL and its payout policies‚ and according to the results‚ we recommend the shareholders to hold FPL’s stocks.
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traded on the national stock exchange. During 2010‚ Stamp Company had net income of $120‚000 and paid dividends of $80‚000. At the end of 2010‚ shares of Stamp Company were trading for $11 each. During 2011‚ Stamp Company had a loss of $60‚000 and paid dividends of $40‚000. Income for the first half of the year was $80‚000 and the loss in the second half of the year was $140‚000. The dividends were paid on June 30. On July 2‚ 2011‚ Posthorn Corporation sold 5‚000 shares of Stamp Company for
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ACCA REVISION MOCK June 2010 Question paper Time allowed Reading and planning: Writing: 15 minutes 3 hours This paper is divided into two sections: Section A TWO compulsory questions Section B TWO questions ONLY to be attempted Formulae Sheet and Mathematical Tables are on pages 3‚ 4‚ 5‚ 6 and 7 Do NOT open this paper until instructed by the supervisor This question paper must not be removed from the examination hall Kaplan Publishing/Kaplan Financial KAPLAN PUBLISHING Page 1
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addition‚ 3M’s profit margins have been on the rise as well‚ which is of great interest to shareholders. It measures how well managers are able to turn sales into profits. Since 1916‚ 3M has been paying their shareholders cash dividends every quarter. The cash dividend per share is $2.20 billion which steadily grew from $1.92 billion in 2007. In order for investors and traders to make buying and selling decisions‚ they depend on stock analysis. With this method‚ they are able to study and evaluate
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use Retained earnings represent the amount a company has left after it has paid all its expenses‚ taxes‚ and dividends. A company can return all the cash it has left after it has taken care of its obligations‚ but that would handicap its efforts to expand operations‚ make acquisitions‚ and replace equipment. Some investors like when this figure is returned to them in the form of dividends‚ but most do understand that something must be reinvested for the long term. Companies may retain earnings
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Homework Problems Professor Hubler 07/12/2015 1. When an investor uses the equity method to account for investments in common stock‚ cash dividends received by the investor from the investee should be recorded as? D. A deduction from the investment account DI. DII. Sisk Company has owned 10 percent of Maust‚ Inc.‚ for the past several years. This ownership did not allow Sisk to have significant influence over Maust. Recently‚ Sisk acquired an additional 30 percent of Maust and now will use the
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INFOSYS LIMITED Balance Sheet as at EQUITY AND LIABILITIES SHAREHOLDERS’ FUNDS Share capital Reserves and surplus 2.1 2.2 287 33‚015 33‚302 NON-CURRENT LIABILITIES Deferred tax liabilities (net) Other long-term liabilities 287 29‚470 29‚757 Note September 30‚ 2012 in ` crore March 31‚ 2012 2.3 2.4 42 19 61 21 21 CURRENT LIABILITIES Trade payables Other current liabilities Short-term provisions 2.5 2.6 2.7 27 2‚788 2‚891 5‚706 39‚069 ASSETS NON-CURRENT ASSETS Fixed assets Tangible assets
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Ltd has issued 10 000 5% cumulative preference shares. Explain the meaning of the term “cumulative”. (1 mark) Answer: When a company fails to pay a dividend‚ holders of cumulative preference shares are entitled to receive this missed payment when a dividend is next declared. This rule is cumulative and they are also entitled to the current dividend provided sufficient cash is available. These payments receive priority over the claims of ordinary shareholders. 5. The share capital of Murdoch Ltd
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