Chapter 158 Distributions to Shareholders: Dividends and Repurchases ANSWERS TO END-OF-CHAPTER QUESTIONS 158-1 a. The optimal distribution policy is one that strikes a balance between dividend yield and capital gains so that the firm’s stock price is maximized. b. The dividend irrelevance theory holds that dividend policy has no effect on either the price of a firm’s stock or its cost of capital. The principal proponents of this view are Merton Miller and Franco Modigliani (MM). They
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Walmart Stakeholders 3/18/2013 Walmart is one of the largest retailers in the world that is steadily growing and seeking to develop ways of meeting the needs of their stakeholders. In our textbook‚ stakeholders are defined as “people who stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address” (Nickels‚ McHugh & McHugh‚ 2009). Walmart has several internal and external stakeholders that keep the business at the top of the retail
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we are going to explain the role of shareholders‚ directors and partners in the different types of business; and then we will see the importance of legal constraints on decision making within business organisations. 1- THE ROLE OF THE SHAREHOLDERS: There are no shares in the sole trader and partnership ownership; that is why shareholders do not apply in these two types of businesses. In Private Limited Companies‚ there must be at least two shareholders but no maximum number. The principal
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BBA 360 Study Guide Exam III Fall 2013 Project Management Budgets and Costs; Managing Risks Determining the project budget involves two steps; what are they? 1. Determine the budget for each work package 2. Spread the budget for each work package over the expected time span /activities will be performed to determine how much of the budget should be spent at any one time What are committed costs? -where dollar amounts are expended for materials- services etc. /used over a period longer
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Kenny Jones SCM2601-W01-45955 Final Exam J.J. Schultz May 1‚ 2013 I. 360-Degree Evaluation 1. Explain the concept of the 360-Degree Evaluation. The 360-Degree Evaluation or 360-Degree feedback system is a performance evaluation system. This evaluation system is considered 360-degrees because it involves the collecting of performance information from an employee’s sphere of contact. This includes evaluations from direct peers and co-workers‚ managers and supervisors
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Memo to Shareholders – Carpino Company To: Shareholders‚ Carpino Company Inc. From: Subject: First Year Performance of Carpino Company Introduction Upon completion of Carpino Company’s first year of business‚ it is with great satisfaction that I present to you the year end Cash Flow Statement and analysis for the period ended January 31‚ 2007. You will notice the statement as presented shows in detail the various operating‚ investing‚ and financing activities of the organization. Analysis
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There are many factors which have an effect over corporate strategy other than the organisations stakeholders which can influence the management decision process and the corporations strategy. The most influential external factors which will effect the organisations strategy are those included within the PESTEL framework and ethical issues within the marketplace‚ internal factors will mainly include the organisations history and culture. When discussing strategy there are generally 3 different
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360 Feedback Leadership: When this student works with the team‚ is he exhibiting leadership qualities in the role that he is playing? If yes‚ can you provide examples of how he contributes positively through his leadership? If not‚ how can the student improve his leadership skills? How would you rate him for his leadership skills on a scale of ten? Problem Solving: Is this student able to solve problems effectively under any given circumstances? If yes‚ what skills did he demonstrate in solving
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Stakeholders As argued by Sharma & Starik (12) a stake holder is that which is affected by the operation of an organization entirely or can affect the organization directly. The organization can be of any kind meant to realize certain goals by the society. Stake holders are tenet to the development and performance of the organization without which the organization either cease or collapse completely. As such any organization must strive to identify its stakeholders and their specific needs
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2.6 Is Shareholder Value Maximization the Right Objective? In their widely cited book The Value Imperative—Managing for Superior Shareholder Returns‚ McTaggart‚ Kontes‚ and Mankins (1994) write‚ Maximizing shareholder value is not an abstract‚ shortsighted‚ impractical‚ or even‚ some might think‚ sinister objective. On the contrary‚ it is a concrete‚ future-oriented‚ pragmatic‚ and worthy objective‚ the pursuit of which motivates and enables managers to make substantially better strategic and organizational
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