Case: Dividend Policy GEORGIA ATLANTIC COMPANY During the depression of the 1930s‚ Ben Jenkins‚ Sr.‚ a wealthy‚ expansion-oriented lumberman whose family had been in the lumber business in the southeastern United States for several generations‚ began to acquire small‚ depressed sawmills and wholesale lumber companies. These businesses prospered during World War II. After the war‚ Jenkins anticipated that the demand for lumber would surge‚ so he aggressively sought new timberlands to supply
Premium Balance sheet Dividend Stock market
cash dividends in 2012 at the same rate of growth as its Net Income rate‚ what will be the total 2012 dividend payout in Dollars? 3‚000‚000 x (1 + .08) 3‚000‚000 x 1.08 = $3‚240‚000 2. What is the 2012 dividend payout ratio if the company increases its dividends at 8%? Net income increased by 8% would be 15‚000‚000 x (1 + .08) = 15‚000‚000 x 1.08 = 16‚200‚000 Dividend Payout = 3‚240‚000 / 16‚200‚000 = .2 = 20% 3. If the company follows a residual dividend policy‚ and maintains its
Premium Dividend
MBA 509 Recommended Chapter Questions These questions are the focus of what I am covering on the final exam. Understand the answers to these questions and should not be surprised by anything on the exam. Chapter 14: Capital Structure in a Perfect Market 14-5. Suppose Alpha Industries and Omega Technologies have identical assets that generate identical cash flows. Alpha Industries is an all-equity firm‚ with 10 million shares outstanding that trade for a price of$22 per share. Omega Technologies
Premium Stock market Stock Dividend
A PROJECT REPORT ON “Comparative Study of IDBI Federal’s Incomesurance with the other products available in the market.” IDBI FEDERAL LIFE INSURANCE CO. LTD. Submitted By: Ravi Gupta 11BSP2089 SUMMER INTERNSHIP PROGRAM 2012 IBS GURGAON A PROJECT REPORT ON “Comparative Study of IDBI Federal’s Incomesurance with the other products available in the market.” Submitted By: Ravi Gupta 11BSP2089 A report submitted in partial fulfilment of The requirements of
Premium Life insurance Insurance
Describe the payout policy of Linear Technologies historically. Describe Linear’s current cash position and its financing needs. The company initiated its dividend in 1993 with a relatively conservative payout ratio of 15%‚ based on a quarterly dividend of $0.05/share/quarter ($0.00625 split adjusted as per Exhibit 3). As of 3Q2003‚ the dividend is also $0.05/share/quarter‚ adjusted for stock splits‚ which translates into a payout ratio of . The payout ratio is currently 27.5% on an as adjusted
Premium Stock market Stock
THE WM. WRIGLEY JR. COMPANY Team 14 Constantine Brocoum Courtney Delia Stephanie Doherty David Dubois Radu Oprea November 19th‚ 2009 Contents Objectives 1 Management Summary 2 Active Investor Strategy 2 Effects of $3 Billion in New Debt for Dividend or Stock Repurchase 2 a. Outstanding Shares 2 b. Book Value of Equity 2 c. Price per Share 2 d. Earnings per Share 3 e. Debt Interest Coverage Rations and Financial Flexibility 3 f. Outstanding Shares 3 Wrigley’s
Premium Stock Stock market Corporate finance
INTRODUCTION Company Background: The company name is: SpeakAsia Online Pte Ltd. formerly known as : Haren Technology Pte. Ltd. formerly known as: PAN Automotives Pte. Ltd. (Compliance rating for this company is Non Compliant currently) Prior to this name they were operating under: HAREN VENTURES PTE. LTD. f.k.a HAREN AUTO PARTS PTE. LTD. f.k.a HAREN MULTICONSULT TRADE SERVICES PTE. LTD. Surveys cut the risk of product failure to a large extent as it enables companies to understand
Premium Paid survey Statistical survey
The proposals of the meeting with board of directors for Greta Schweitzer consisted of three items of business: (1) approval of the financial plan for 2001‚ (2) declaration of the quarterly dividend‚ and (3) adoption of an incentive compensation plan for the marketing manager. She has to evaluate the past financial performance of company and review the strategies about credits and inventories. Deutsche Brauerei produced the quality beers over the years. Its net sales and profit have been incredibly
Premium Accounts receivable Debt Balance sheet
of the company’s stock? Solution: The total dividend paid by the company was $640‚000. Since there are 150‚000 shares outstanding‚ The total earnings for the company were: Total earnings = 150‚000($5.08) = $762‚000 This means the payout ratio was: Payout ratio = $640‚000/$762‚000 = 0.84 So‚ the retention ratio was: Retention ratio = 1 .84 = 0.16 Using the retention ratio‚ the companys growth rate is: g = ROE b = .25(.16) = .04 or 4% Now we can value the company using the entire dividend
Premium Stock Stock market
----------------------------------- Jul 23‚ 2006 Industry Report of the FMCG sector profiling P&G‚UL‚KMN‚ ----------------------------------- Financial Statement Analysis In the healthy and growth inducing economic scenario of the 2000’s‚ P&G has seen double digit revenues growth to around $56b in 2005. Keeping its costs low has seen it achieve healthy profit margins of around 11% - 12%. Refer Table 1. Table 1 Margins P&G (in %) 2003 2004 2005 Gross Margin 49 51
Premium Dividend Stock market