Chapter 17 Question B1 Bixton Company’s new chief financial officer is evaluating Biston’s capital structure. She is concerned that the firm might be underleveraged‚ even though the firm has larger-than-average research and development and foreign tax credits when compared to other firms in its industry. Her staff prepared the industry comparison shown here. Rating Category Fixed Charge Coverage Funds From Operations/Total Debt Long-Term Debt/Capitalization Aa 4.00-5.25x 60-80% 17-23% A 3.00-4
Premium Finance Dividend Dividend yield
purpose of the analysis is to find out whether Linear Technology should increase its dividend payout. Linear Technology’s Payout Policy The payout policy of Linear Technology can be concluded into two elements: dividend payment and repurchase activities. To maintain competitiveness‚ Linear paid a dividend for about 10 years. It first initiated a quarterly dividend of $0.00625 per share in 1993. The payout ratio is closer to 25% to 30% consistently during these years. Dividend yields various from
Premium Taxation Tax Dividend
payable‚ $500‚000 of notes payable‚ and $450‚000 of accruals. The after-tax profit margin is forecasted to be 6%‚ and the forecasted payout ratio is 40%. Use the AFN equation to forecast Broussard’s additional funds needed for the coming year. AFN = $238‚800 Sales expected in 2013 =$9‚200‚000 After-tax profit margin ($9‚200‚000*6%) =$552‚000 Dividend payments [$552‚000*40%] =$220‚800 Addition to retained earnings [$552‚000 - $220‚800] =$331‚200 Increase in assets = $5‚000‚000*15% $750‚000 Increase in
Premium Generally Accepted Accounting Principles Finance Liability
one of the broadest product portfolios in the market we have a sustainable‚ long-term relationship with our customers. The market we operate in is narrow from both customers and competitors’ perspective. At this point in time we command approximately 40% market share‚ while our closest competitor holds 25%. The remaining 35% is divided between 6 other major competitors. From our customers perspective there are 80 companies‚ 15 of which make up 60% of the market. For our employees the industry is highly
Premium Salary Consultative selling Customer service
Answer: A 3. Wilco Company reports the following: 2005 2004 Retained Earnings $2‚000‚000 $ 1‚300‚000 Common Stock $ 500‚000 $ 500‚000 Paid-in Capital $3‚000‚000 $ 3‚000‚000 Net Income for year $ 900‚000 $ 400‚000 Dividend payout ratio for 2005 was: A) 27% B) 12% C) 22.2% D) Not determinable Answer: C 4. If a company receives an unqualified audit opinion it means the auditors: A) did not complete a full audit and therefore do not feel qualified to
Premium Financial ratios Balance sheet Generally Accepted Accounting Principles
Financial Strategy and Governance Taught by Dr.Viktor Manahov Financial Strategy and Governance Lecture 4: Financial strategies from growth to maturity to decline. Learning outcomes At the end of this lecture students should be able to: •Understand the transition from growth to maturity. •Outline key aspects in the mature business profile. •Understand the relationship between perceived risk and the return required in a mature business. •Identify the most appropriate financial tools for mature
Premium Dividend Dividend yield
Applied Corporate Finance FIN 246A Assignment #8 – Arch Communications & LOLWA ALBOHAMAD Arch Communications Group Inc. Evaluate Arch’s industry and its strategic position vis-avis its major competitors. What does your analysis imply for Arch’s future investment requirements and the company’s ability to earn profits greater than its cost of capital? Arch Communications became the 3rd largest paging company in the US‚ with 3 million subscribers in 1996. The core activities included;
Premium Corporate finance Mergers and acquisitions Finance
ADAMAC Inc. An Analysis of Production and Cost Theory Group III Osvald Ronald David Tjahjo Agenda • • • • Company’s Overview Current Issues Case Analysis Recommendation 2 Overview of Adamac Inc. • Provide services of jet cutting (laser‚ water jet‚ wire) built by Ryan Olliver and Ben Watts‚ previously worked for Perts • Adamac was built with an objective to provide more efficient and higher customer service • Adamac had started with used water jet‚ used laser cut machine‚ and wire cutter machine
Premium Revenue Net income Balance sheet
Chapter 4 Discussion Questions |4-1. |What are the basic benefits and purposes of developing pro forma statements and a cash budget? | | | | | |The pro-forma financial statements and cash budget enable the firm to determine its future level of asset needs and the| | |associated financing
Free FIFO and LIFO accounting Inventory
and Stock Splits (Shares) 6) Research Objectives and Methodology 36 • Objective • Methodology 7) Findings & Analysis 40 8) Conclusion 45-52 9) Bibliography
Premium Dividend Dividend yield