Global reduces its dividends paid

Assignment Help Business Economics

Reference no: EM13891959

Consider the following potential events that might have taken place at Global Con- glomerate on December 27, 2012. For each one, indicate which line items in Global's cash flow statement would be affected and by how much. (In all cases, ignore any tax consequences for simplicity.)

(a) Global reduces its dividends paid on December 27, 2012 by 5 cents per share.

(b) Global purchases a new machine for $2 million which is financed by equity, debt, and cash in equal proportions.

(c) Global realizes that its plant is deteriorating faster than previously anticipated so that it raises its depreciation and amortization expenses by 25%.

(d) Global decides to pay back an additional $1 million to a supplier before the end of the year as a nice gesture.

Reference no: EM13891959

Questions Cloud

Identify the demand function and the supply function : The market for grapes is given by the following supply and demand equations: Q = 120 – 15P Q = 20 + 5P a. Identify the demand function and the supply function. b. Compute for the equilibrium P* and Q* (Q*, P*). c. Compute the PED at (Q*,P*) AND the P..

Explaining how they can engender monopoly situation : In a pure monopoly, the monopolistic firm is the only one selling the product, therefore there are no constraints on what the firm can charge or on the profit it can make. Do you agree? Why? Discuss various barriers to entry into an industry, explain..

Donut sales are derived from the drive-through window : You are the manager of Dunkin Donuts. Almost all of your donut sales are derived from the drive-through window. You know from experience that coffee is a complement for your donuts. The morning newspaper says that a major storm has just destroyed 50 ..

What is the equilibrium real GDP : An economy has a consumption function of C = 400 + .75(DI) The following values are fixed : G , T = 1000 NX = 50 I = 750 Suppose that the CPI ( i.e., the "Price Level") is currently equal to 115. What is the equilibrium real GDP (on the demand side)?

Global reduces its dividends paid : Consider the following potential events that might have taken place at Global Con- glomerate on December 27, 2012. For each one, indicate which line items in Global's cash flow statement would be affected and by how much. Global reduces its dividends..

Aggressive marketing campaign that boosts sales : Suppose that in 2013, Global launches an aggressive marketing campaign that boosts sales by 15%. However, their operating margin falls from 5.57% to 4.50%. Suppose that they have no other income, interest expenses are unchanged, price per share of Gl..

Indicate the change to globals book value of equity : Consider the following potential events that might have taken place at Global Conglomerate on December 27, 2012. For each one, indicate which line items in Global's balance sheet would be affected and by how much. Also indicate the change to Global's..

Demonstrate the shift that will occur in market in long run : You are going to display what happens in the long run in perfectly competitive markets when firms are operating at a loss. Demonstrate the shift that will occur in the market in the long run if all firms in this market are operating at a loss. Identi..

Are coffee and tea substitutes or complements : Brazil is the world's largest coffee producer. There was a severe drought in Brazil in 2013-2014 that damaged Brazil's coffee crop. The price of coffee beans doubled during the first three months of 2014. Draw and discuss a supply and demand diagram ..

User Account

All Pages