If so, how much? On what financial statement did you find this? In fiscal 2008, Nike’s board did declare a cash dividend of $0.0875 per common share. This was found in the consolidated statement of income and also the consolidated statement of cash
c. Provide a description of a scenario where this kind of decision between two types of payment streams applies in the “real-world” business setting. “Financial Managers use Present Value (NPV/FPV) calculations to manage and account for the time value of money (NPV). One scenario is providing service is one year and receiving payments in later year. We should assume that the company provides service in December 2011 and agrees to be paid $100 in December 2012. The time value of money tells us that the part of the $100 is interest, which is for waiting one year for the $100.
Analysis of Ratios Liquidity Ratios Current Ratio= CA/CL Current ratio is a financial ratio that evaluates if a business has an adequate amount of resources to cover its debt over the next business cycle (typically 12 months). It does so by relating company's current assets to its current liabilities. Standard current ratio values differ from industry to industry. The higher this ratio, the more proficient the company is to pay its debt. A problem with the current ratio is that it accounts for inventory, which is not as liquid as other current asset accounts, and may lead to a disingenuous analysis.
Corporations have three methods available for raising new capital in the free enterprise system. retained earnings- putting money from the company’s profits back into the business after taxes and dividends, if any, have been paid borrowing- taking out loans or issuing bonds which are sold to investors equity financing- issuing new shares of stocks Although we frequently hear the words “stocks and bonds” use together, these two types of securities differ significantly. A person who buys a bond essentially is lending money to the issuer of a bond (usually a company or a branch of government). The issuer of a bond promises to repay the amount of a loan at a specific time (called the date of the bond’s maturity). Between the time the loan is made and the date of maturity, the issuer also promises to pay the bondholder a specified amount of interest at specified
Current ratio enables us to examine the liquidity of the business by equating the amount of current assets to current liabilities. Although current ratio fluctuates from industry to industry, is preferred to have at least one dollar of current assets for every dollar of current liabilities. Kohl's has the advantage over J.C Penney, as Kohl's current ratio is 1.87 in comparison to J.C. Penney?s ratio of 1.67. Kohl?s Corporation can pay all of its current liability and still have a positive working capital better than J.C.
These patterns can be clearly observed in the capitalist economic environment where persons with higher economic capital dominate persons with lower capital. The goal is to maximize profit; minimize costs. Economists define opportunity cost as the value forgone every time we do something. In simple words, economists allocate a monetary value to each second we spent. In a response to a popular question asked about Bill Gates, the world’s richest man in the U.S as of the year 2015, is it worth for Bill Gates to pick up a 100 dollar bill?
Based on the result of calculation, the NPV that Berkshire can gain is $51.2 million. Berkshire would receive “penny warrants”, which would represent 19.9% of Media General’s common shares outstanding if exercised. By using Black–Scholes–Merton model, the value of the warrants equals to $14,564,265 (We directly used the historical volatility in MEG management compensation – employee stock options). Besides, after relieving the newspaper
At the end of Q3 2014, PNRA had a cash balance of $146 million—compared to $125 million at the end of fiscal year 2013. Cash flows from operations totalled $194 million9. Cash equivalents totalled $146 million11. The large cash reserves and consistent revenue increases each year coupled with the relatively low amount of total debt indicate that the firm is strong financially. Where the Company Issues Shares Panera’s common stock is traded under the title “PNRA” on the NASDAQ Global Select Market.
In many mergers there are so much larger that even substantial net benefits would not show up clearly in the buyer’s share price. Suppose, for example that company A buys company B which is only one-tenth of A’s size. Suppose the dollar value of the net gain from the merger is split equally between company A and B. Each company’s shareholders receive the same dollar profit but B receives 10 times A’s percentage
Their sales & marketing, costs, growth, things of that nature. Doing a study of how much J.C. Penney pays for their merchandise, the rent of their stores, appreciation of their real estate, and the cost of their marketing versus how much they charge in their store for the products would be an example of fundamental analysis. Doing a study of how the average price of J.C. Penney’s stock over 3 months has been outperforming it’s 12 month average performance is an example of technical analysis. Fundamental analysis usually consists of looking at a stock’s core financial statements: the balance sheet and income statement. They use these to form a view on the company’s position in their industry, growth metrics, profitability, among other things.