Question 3-3 If a “typical” firm reports $20 million of retained earnings on its balance sheet‚ could its directors declare a $20 million cash dividend without having any qualms about what they were doing? Explain your answer. Its directors could declare a $20 million cash dividend without having any qualms about what they were doing‚ because retained earnings may not held as cash. Retained earnings represent the cumulative total of all earnings kept by the company during its life. Therefore‚ $20
Premium Generally Accepted Accounting Principles Balance sheet Liability
International (2009) forecasts that Indonesia is home to one of the fastest-growing construction industries in Asia despite the average construction growth rate being expected to remain under 10% over the period 2006 – 2010. Similarly‚ Howlett and Powell (2006) place Indonesia as one of the 20 largest construction markets in 2010. Although the prospects for the Indonesian construction industry are now very promising‚ many local construction firms still face serious difficulties‚ such as poor performance
Premium Regression analysis Indonesia Strategic management
*Faize Nabi ** Saif Azam ***Azmat Ali Khan Abstract The research paper aims to explore the associations between and among Unit’s profit-making‚ GreenEx Performance and CSR Index with the use of Spearman’s Rank Correlation Method. The data of the Units has been adopted from the Forbes’ India’s Top 100 Units. A CSR Index has been generated on the basis of ratio of Unit’s actual CSR spend and stipulated 2% of Avg. PAT (as per CSR Clause no. 135 in the proposed Companies Act 2013). For GreenEx performance
Premium Corporate social responsibility Business ethics Spearman's rank correlation coefficient
development of technology and new products‚ e.g. DoubleClick in 2008; acquisition of Postini in 2007 and dMarc Broadcasting in 2006. Why would those innovative smaller firms have agreed such acquisitions or merger with Google? Using the growth theories critically evaluate the growth of smaller firms in relation to the influence of larger firms and identify specifically how Google’s strategy constitutes entrepreneurial growth. INTRODUCTION In the recent years Google‚ the most popular internet search
Premium Google Mergers and acquisitions
essentially the same product. The firms produce a standardized product and there is a free entry and exit of these firms to and from the industry. The firm in a purely competitive market faces a perfectly elastic demand curve at the price determined by equilibrium in the market (Hirschey 379). The firm in a short-run supply curve is the short-run marginal cost curve above the minimum point on the average variable cost curve‚ also known as the shutdown point. In the short run‚ firms behave differently than
Premium Economics Supply and demand Costs
THE RELATIONSHIP BETWEEN EXECUTIVE COMPENSATION AND FIRM PERFORMANCE IN KENYAN BANKING INDUSTRY Dr. Josiah Aduda‚ jaduda@uonbi.ac.ke‚ Lecturer and chairman‚ department of Finance and Accounting‚ School of Business‚ University of Nairobi‚ Kenya and Leonard Musyoka‚ University of Nairobi Abstract Economic theory of executive pay has focused on the design of optimal compensation schemes to align the interests of hired managers and shareholders. Agency theory has identified several
Premium Corporate governance Board of directors
Journal of International Money and Finance 30 (2011) 678–691 Contents lists available at ScienceDirect Journal of International Money and Finance journal homepage: www.elsevier.com/locate/jimf The impact of the financial system’s structure on firms’ financial constraints Christopher F. Baum a‚ b‚ *‚ Dorothea Schäfer b‚ c‚ Oleksandr Talavera d a Department of Economics‚ Boston College‚ Chestnut Hill‚ MA 02467‚ USA DIW Berlin‚ Mohrenstraße 58‚ 10117 Berlin‚ Germany Jönköping International Business
Premium Investment Finance Ratio
phenomenon in which inflation and unemployment steadily increased. A loose monetary policy led to very low interest rates. Corporations were borrowing large amounts to finance leverage buyouts (LBOs)‚ which led to higher and high interest burden. One of the main instruments used was financial derivatives‚ which gave Banks additional profit. Moreover‚ this instruments represented off balance sheet activities‚ thus helping bank capital. Nonetheless‚ these instruments were risky and could led to enormous
Premium Corporate finance Bank Finance
Tse Hiu Lam 2013559921 Assessment 2 – Case Synthesis: Morgan Stanley‚ Simpson Thacher & Bartlett LLP‚ Oppenheimer & Co‚ Inc. involved Introduction Today’s financial market is a vibrant yet unpredictable domain‚ with mergers and acquisitions that sometimes cannot be predicted by the market trend or even with sophisticated information technology. With such uncertainty‚ investors are disposed to gain all necessary information upon making investment decisions. This puts those who handle sensitive undisclosed
Premium Fraud Ethics Mergers and acquisitions
Corp‚ China Aerospace‚ China Shipping and Zhong Rong Group‚ Sources say these cornerstone investors have covered in total about 17.5 per cent of the overall US$2 billion IPO. Meanwhile‚ Galaxy Securities‚ the mainland’s seventh largest brokerage firm by assets‚ may raise as much as US$1.57 billion through a mixed of new and old shares. The old shares represents about US$50 to US$68 million worth shares. The shares are priced at a range between HK$4.99 and HK$6.77‚ translating into a price to book
Premium Stock market Stock