Recommended reducing the current quarters earnings

Assignment Help Financial Management
Reference no: EM13933102

Assume that you are the CFO of a Company contemplating a stock repurchase next quarter. You know that there are several methods of reducing the current quarterly earnings which may cause the stock price to fall prior to the announcement of the proposed stock repurchase. 

What course(s) of action would you recommend to your CEO? 

If your CEO came to you first and recommended reducing the current quarter's earnings, what would be your response?

Reference no: EM13933102

Questions Cloud

Statistical treatments of data using statistical software : The aim of this workshop is to give you some experience using standard statistical treatments of data using statistical software. The package we will use for this workshop is Minitab.
Problems of measurement in context of present aasb standards : Discuss the problems of measurement in the context of the present AASB / IASB standards and framework using your selected annual report to provide examples.
Without being gender bias, which theory do you favor : Which theory out the two (Lawrence Kohlberg and Carol Gilligan) do you feel is the best for middle childhood moral development, adolescence as well as adulthood moral development? Why
Discuss the role of community based corrections program : Explain why jails play an important role in the criminal justice system. Discuss the role of community based corrections program associated with jails and prisions. Describe violent behavior that occurs in jails and prisions
Recommended reducing the current quarters earnings : Assume that you are the CFO of a Company contemplating a stock repurchase next quarter. You know that there are several methods of reducing the current quarterly earnings which may cause the stock price to fall prior to the announcement of the propos..
Examining two articles on reducing the plagiarism : This assignment aims at examining two articles on reducing the plagiarism by using software. One article is 'A study of electronic detection and pedagogical approaches for reducing plagiarism' by Chia- An Choa and other article is 'Formative feedb..
An efficient way of calculating exponentials : Suppose that we have an efficient way of calculating exponentials. Based on this, use Newton's method to devise a method to approximate log(2) [where "log" is the natural logarithm function]. Use an initial point of x0=1, and perform 2 iterations.
Should the firm invest in an average-risk project : Company ABC has 3-year bonds outstanding. The bond’s coupon rate is 10% and it is selling at $1,000. The total value of the bonds is $10M. The company also has preferred stocks, which are worth $5M. If an average-risk project will produce a 10% rate ..
Record the above transactions in a horizontal statements : Record the above transactions in a horizontal statements model like the following one.

Reviews

Write a Review

Financial Management Questions & Answers

  Surrendering old equipment before the end of its useful life

When looking at these types of projects, one must consider any cash flows that arise from surrendering old equipment before the end of its useful life.

  Nominal annual rate of interest convertible semi-annually

A 1,000 par value 10-year bond with coupons at 4% convertible semiannually can be called on any coupon date starting at the end of year 6. The price of this bond is 900, and the bond is redeemed at par. What is the minimum yield expressed as a nomina..

  Using the indirect method in operating activities section

Prepare a statement of cash flows for 2014 using the direct method in the Operating Activities section. Prepare another statement of cash flows for 2014 using the indirect method in the Operating Activities section.

  Required rate on equity and growth rate

Suppose that today's stock price is $33.9. If the required rate on equity is 19.8% and the growth rate is 3.2%, compute the expected dividend (i.e. compute D1)

  Cause carolina to be indifferent between the two methods

Carolina Vineyards is considering two alternative production methods for turning grapes into wine. One method calls for using a hand-operated press, while the other would employ a new, automated press. It has been estimated that the variable cost per..

  The amount needed to keep and operate your business

Solve each situation separately, where P = principal; r = interest rate; t = time in years; I = interest and future value FV = You want to start a bakery business. For this, you will need a capital of $ 75,000 to start operating. If you have to opera..

  A lockbox plan is most beneficial to firms

A lockbox plan is most beneficial to firms that:

  Expected rate of return from this investment opportunity

James Fromholtz is considering whether to invest in a newly formed investment fund. The fund’s investment objective is to acquire home mortgage securities at what it hopes will be bargain prices. The fund sponsor has suggested to James that the fund’..

  Explain the diversification benefits of real estate

Explain the diversification benefits of real estate in a portfolio. Given the numerous options examined for real estate investment which do you feel is the optimal route for your portfolio? Provide the rationale for the choices you make. Differentiat..

  The dividends are expected to grow at a consent rate

The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.95 per share on its stock. The dividends are expected to grow at a consent rate of 4 percent per share indefinitely. If investors require a rate of return of 10.5 percent on The Jackson-T..

  The paradise shoes company has estimated its weekly tvc

the paradise shoes company has estimated its weekly tvc function from data collected over the past several months as

  What must the beta of this stock be

A stock has an expected return of 14.4 percent, the risk free rate is 5.6 percent, and the market risk premium is 7.1 percent. What must the beta of this stock be?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd