Investment Analysis and Recommendation Lester E. Downing H210 Professor Finance Les Roces-Gruyére University of Applied Sciences Submitted August 15‚ 2010 Investment Analysis and Recommendation Accor: Governance Accor is an international hotel group with corporate headquarters located in Paris‚ France. The company is publicly traded on the French stock exchange‚ the CAC 40. One of the largest hotel groups in the world (Sharkey‚ 2009)‚ Accor operates hotels throughout the world in
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Gainesboro Machine Tool Company A Case Study By: Wayne Parker 3/17/2009 Introduction Gainesboro Machine Tool Company (Gainesboro) is an enterprise in transition. Ashley Swenson is the Chief Financial Officer (CFO) of Gainesboro‚ who has to make a difficult recommendation to a divided board about the company’s shareholder distribution strategy as the company begins to emerge from that transition. The following analysis will provide a brief history of the company‚ a discussion of the underlying
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Buy Into CenturyLink’s Generous Yield? by David Klein 4 Reasons To Buy Lockheed Martin Stock by Dividend Ranch Income Investing Strategy Super-Size Your Big Mac Dividends: Write Covered Calls by George Schneider Finally Feeling Bullish by George Acs Dividend Ideas Gannett Inc: Reasons To Consider This Dividend Stock by Robinson Roacho Raytheon Company Dividend Stock Analysis by Dividends4Life Buying GE For The Dividend by Abba’s Aces Intel: Good Dividend Despite Growth Challenges by Jim
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ways: (I) Dividends (II) Share repurchases (III) Interest payments A) I only B) II only C) III only D) I and II only Answer: D Type: Easy Page: 415 2. Dividends are decided by: (I) The managers of a firm (II) The government (III) The board of directors A) I only B) II only C) III only D) I and II only Answer: C Type: Easy Page: 416 3. Which of the following dividends is never in the form of cash? (I) Regular dividend (II) Special dividend (III) Stock dividend (IV) Liquidating dividend A) I only
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internal compliance * Auditing fees * Dividends Much of the factors are above are very difficult to quantify‚ but using assumptions we could have an idea of the cost over a 5 year basis to compare with preferred shares. First‚ let’s find a dividend cost‚ hoping the company does well and we pay out a 20% dividend rate with a growth of 25% in sales from 2007 - 2012. We get a total dividend amount to be 18.82 million (APPENDIX ONE). Since dividends are not an obligation but they are a benefit
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1. You have a cash obligation of $132‚240 to be made at the end of year 5. Show how you can use coupon bonds with a coupon rate of 8%‚ a face value of $1‚000‚ a maturity date at the end of year 6‚ and a yield to maturity of 8% to ensure that you can meet your cash obligation at the end of year 5. Suppose that you purchase the bonds at the beginning of year 1 and that the market interest rate changes only once right after you have purchased the bonds. There are three possible interest rates‚ 7.9%
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stock valuation follows bond valuation and the value of preferred stock is shown to be the present value of perpetual annuity. The cash flows from the constant-size dividend is fairly certain‚ and most preferred stock does not have a maturity date. Finally‚ common stock is presented but neither the future cash flows (from dividends) nor the final value is known with any degree of certainty‚ Generally students seem to understand the bond and preferred stock valuation techniques‚ but they tend to
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FIN-516 WEEK 1 – HOMEWORK ASSIGNMENT Problem Based on Chapter 14‚ Residual Dividends Middlesex Plastics Manufacturing had 2011 Net Income of $15.0 Million. Its 2012 Net Income is forecast to increase by 8%. The company’s capital structure has been 35% Debt and 65% Equity since 2010‚ and the company plans to maintain this capital structure in 2012. The company paid $3.0 Million cash dividends in 2011. The company is planning to invest in a major capital project in 2012. The capital budget
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income of $475‚000. If it follows the residual dividend policy‚ what is its forecasted dividend payout ratio? (a) 40.61% (b) 42.75% (c) 45.00% (d) 47.37% (e) 49.74% | | | Student Answer: | | (d) 47.37 Equity required (Residual income) = $625‚000*40% = $250‚000 Dividend paid = $475‚000 - $250‚000 = $225‚000 Dividend payout ratio = 225000/475000 = 47.37% | | Instructor Explanation: | Answer is: d Text: pp. 570-572 - Residual Dividends‚ Chapter 14 Capital budget $625‚000 Equity
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Current‚ quick ratio - How capable is the business in meeting its short-term obligations as they fall due? 4 Stability ratios: eg. Gearing - How healthy is the business in the long-term financially? 5 Investor ratios: EPS‚ Price earning ratio‚ Dividend yield - Are the investors receiving sufficient return on their investment? Critical evaluation of the financial ratios Ratio analysis used with care‚ can reveal much about a company and its overall operations and image to stakeholders but there
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