Dividend Policy and Firm Performance: Hotel REITs vs. Non-REIT Hotel Companies Executive Summary. This article investigates whether the greater reliance of real estate investment trusts (REITs) relative to non-REIT corporations on external equity financing suggests greater capital market discipline of REIT management‚ or greater access to capital‚ overpaying for assets‚ overbuilding and overinvestment. Our analysis is based on a sample of sixteen hotel REITs and fifty-one non-REIT hotel corporations
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Article Outline – Why Bad Multiples Happen to Good Companies The article suggests that rather than focusing too much on having the highest multiples with regards to the companies’ performance‚ managers and executives will be better off focusing on the amount of value they create with regards to growth margins and capital productivity. One example of this was the US household-products manufacturer Church & Dwight‚ although the company’s growths on EBITA margins (+13.9% points compared to the
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Experienced Palm Beach Gardens Financial Advisor Joseph Grund An associate manager with the Palm Beach Gardens‚ Florida offices of Ameriprise Financial Services‚ Inc.‚ Joseph Grund provides a range of customized insurance‚ investment‚ wealth management‚ retirement‚ and estate planning services. He has more than 22 years of experience in the field of financial advisement and holds active membership in the United States Financial Industry Regulatory Authority. Before joining the Ameriprise team in
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Journal of Business Finance & Accounting‚ 29(7) & (8)‚ Sept./Oct. 2002‚ 0306-686X Dividend Imputation and Shareholder Wealth: The Case of New Zealand Andrew Prevost‚ Ramesh P. Rao and John D. Wagster* 1. INTRODUCTION Effective from April 1‚ 1988‚ New Zealand changed its existing two-tier `classical ’ dividend taxation regime to full dividend imputation. Corporate income is now only taxed once rather than at both the corporate and shareholder level. Concurrently‚ the New Zealand tax code was revised
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assume the bond matures on today’s date (May 28) in its maturity year. Note that price is expressed in percentage of par value. Company XYZ Inc. Coupon 7.000 Maturity May. 28‚ 2017 Price 97.667 Yield a. How much would this bond cost you to buy today if its par value is $1000? b. What is the bond’s yield to maturity? c. If your required return is 9% APR‚ would you buy this bond today? Show work to prove why or why not. 2. A year ago‚ you purchased two bonds issued by the same company‚ ABC Co. : (1)
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The firm’s stocks are undervalued. According to the dividends‚ growth rate‚ and discount rate the share price should be $43.36 which is $8.11 higher than the current market price. If the repurchase of $1Million worth of shares occurs‚ the company’s Return on Equity would increase. This would happen since there is less shareholder’s equity in the company due to the lower amount of shares outstanding. Currently the company’s Return on Equity is better than Standard Auto and Allied Motors but worse
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valued the stock at $162 a share‚ while AT&T estimated its value at $100 a share. The difference resulted in a whopping $1.6 billion. As this example demonstrates‚ stock valuation seems to be both art and science. In this cyber-problem‚ use the dividend growth model’s constant growth assumptions to value Emerson’s stock. In addition‚ you will apply the concepts of risk and return by estimating the stock’s required return from the CAPM model. In order to arrive at a value for Emerson Electric‚ you
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SHARE | | | | | | | | | EPS= | NET INCOME - PREFERRED DIVIDENDS | | | | AVE. NO. OF COMMON SHARES OUTSTANDING | | | | | | | | | NET INCOME | OUTSTANDING SHARES | | | 3‚637‚297‚943 | 2010 | 1‚053‚438‚818 | | | | 2009 | 1‚051‚458‚156 | | | | | | | EPS= | 3‚637‚297‚943 | | | | (1‚053‚438‚818 + 1‚051‚458‚156)/2 | | | | | EPS is computed because earnings form the basis for dividend payments and future increases in value of shares | | | EPS=
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Part 2 The chocolate industry in UK Britain really is a nation of chocolate lovers. Among the whole world‚ UK has the seventh highest consumption of chocolate. A British eats an average 17.49lbs of chocolate per year (The World Atlas of Chocolate‚ 2011). Switzerland takes the top spot. In Britain‚ an estimated 660‚900 tones of chocolate are eaten per year which is an average of 11kg per person. The UK chocolate industry is worth £3.6billion and sales of chocolate just keep growing and growing
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1 Key data for the calculations: • • • Stock issued for Seahorse = [IS] = 2 Shareholders x 150‚000 shares / each = 300‚000 stocks Dividends paid D0 = 2 x $320‚000 = $640‚000 or DPS = $640‚000 / 300‚000 = $2.13 Calculation of company SeaHorse growth rate gSH = ( 1 – Dividend pay out Ratio) x ROE Dividend Payout Ratio (DPR) is equal to: $640.000 Dividends Dividends Shares = DPS = 300.000 = 42.99% DPR = = EPS 5.08 Net.Income Net.Income Shares Therefore gSH = ( 1 – 42.99% ) x 25% = 14.25% • Calculation
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