CHAPTER 14: DISTRIBUTIONS TO SHAREHOLDERS: DIVIDENDS AND SHARE REPURCHASES 1. The optimal distribution policy strikes that balance between current dividends and capital gains that maximizes the firm’s stock price. a. True b. False ANSWER: True 2. Other things held constant‚ the higher a firm’s target payout ratio‚ the higher its expected growth rate should be. a. True b. False ANSWER: False RATIONALE: The higher the payout ratio‚ the less of its earnings the firm reinvests in the business
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NBER WORKING PAPER SERIES DO SHAREHOLDERS OF ACQUIRING FIRMS GAIN FROM ACQUISITIONS? Sara B. Moeller Frederik P. Schlingemann René M. Stulz Working Paper 9523 http://www.nber.org/papers/w9523 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge‚ MA 02138 February 2003 We are grateful to Harry DeAngelo and Ralph Walkling for useful comments. The views expressed herein are those of the author and not necessarily those of the National Bureau of Economic Research. ©2003 by Sara
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business is to increase the profit for its shareholders – discuss ’. First I am going to explain the role of shareholders and how they affect the decision making of businesses. I will then discuss other stakeholders and the responsibilities that the business ‘owes’ to them. I also plan to look at examples of real life businesses that have made decisions based on the different stakeholder’s needs and wants and compare this in terms of ethical theories. Shareholders are just one form of stakeholders that
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Does shareholders ratification of auditor selection enhance auditor independence? Sear Amiri 894560 Accounting Supervisor : S.N.M. Van den Bogaerde -2012- Abstract: The U.S. Department of the Treasury ’s Advisory Committee on the Auditing Profession (ACAP) recommends that all public companies must have an annual shareholders ratification of external auditor selection. An important aim of their recommendation was to enhance auditor independence. However the ACAP did not provide
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THE JOURNAL OF FINANCE • VOL. LIX‚ NO. 1 • FEBRUARY 2004 Bondholder Wealth Effects in Mergers and Acquisitions: New Evidence from the 1980s and 1990s MATTHEW T. BILLETT‚ TAO-HSIEN DOLLY KING‚ and DAVID C. MAUER∗ ABSTRACT We examine the wealth effects of mergers and acquisitions on target and acquiring firm bondholders in the 1980s and 1990s. Consistent with a coinsurance effect‚ below investment grade target bonds earn significantly positive announcement period returns. By contrast‚ acquiring firm
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IN YOUR OPINION DYOU THINK SHAREHOLDER ACTIVISM WORKS‚ WHY OR WHY NOT Shareholder Activism refers to a range of actions taken by a shareholder to influence corporate management and board. Actions range from threatening the sale of shares (“exit”)‚ letter writing‚ meetings management‚ to asking questions at shareholders meetings and the use of corporate voting rights. The common definition of a shareholder activist is a shareholder “who tries to change the status quo through the “voice”‚ without
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The Racial Wealth Gap The racial wealth gap consists of the wealth and asset differences between the majority race groups: Whites‚ Blacks‚ and Latino. In Forbes Magazine‚ there’s an article written by an author named‚ Laura Shin‚ about how white people have a more advantaged at obtaining more household wealth than other races. This article helps shine light on the difference in the levels of wealth acquired by different races. In this paper‚ I will be connecting conflict theories and wealth inequality
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! ! ! ! Wealth is defined in the Webster Dictionary as a state of being rich and having material prosperity. When asking who is the wealthiest person alive‚ people will most likely respond by saying Bill Gates or Oprah Winfrey. Why does wealth have to be related to materials and money? These things only bring out the worst in everybody. Wealth shouldn’t be measured by how many bills are in ones wallet but rather the prosperity and happiness one has. Societies definition of wealth makes a “wealthy”
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Chow 4c2 1i) Wealth is not the only way to judge how successful a person is. Do you agree? In our materialistic society of today‚ one’s success is often measured by the big bungalow you live in‚ the flashy car parked just outside‚ the clothes you are dressed in and even the breed of dog you own. The world is competing with each other in a show of wealth‚ typified by the show “Keeping up with the Joneses”. Wealth has become a yardstick of success and those who attain great wealth are deemed as having
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Andrew Carnegie had liberal thoughts‚ as expressed in his Gospel of Wealth. I agree with the issues addressed in the Gospel of Wealth‚ such as giving your money away before you die‚ to further society. The purpose was to give the money away before you die‚ so you can regulate where the money goes‚ and that you can assure yourself that it will go to a worthy cause. As said in the gospel of wealth‚ everyone should be able to make as much money as they can‚ but they should give back to the society-
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