Shareholder value

Share repurchases and the protection of shareholders* KATHLEEN VAN DER LINDE** 1 Introduction From a creditor’s perspective there is not much difference between the payment of a dividend in respect of a share and a payment for the acquisition or repurchase of that share. However, from the point of view of the shareholder a dividend is a return on capital while a repurchase is a return of capital to the vendor shareholder. Share repurchases change the structure of the company’s share capital

differences between shareholder wealth maximization and profit maximization? If a firm chooses to pursue the objective of shareholder wealth maximization, does this preclude the use of profit maximization decision-making rules? Explain. Profit maximization means the company makes profit maximize. Maximize shareholder wealth states that management needs to bring maximize the value for its owners by make the most efficient resources and reasonable financial management. Therefore, shareholder wealth maximization

the final decision. Goodpaster believes that ethical values are not introduced in strategic stakeholder synthesis because businesses are strategically placing priorities on stakeholders that are more beneficial and valuable for the business’s welfare in the long-run. b) Goodpaster mentions about a Stakeholder Paradox, in which ethical complications arises whichever management approach a business chooses. The multi-fiduciary

joint stock companies etc. Total capital of the company is divided into a number of small units of fixed amount and each such unit is called a share. The fixed value of a share register with the registrar of Companies is called face/ nominal value. However, a company can issue shares at a price different from its nominal value or face value. As the total capital of the company is divided into shares,

single model of governance applies to them all. But is this true of closely held companies established for PPP investments in infrastructure? The complex governance structures typical of Infrastructure PPPs, and the close relationships between shareholders and directors – often the same person – change the nature of the governance task when compared to the listed sector. The key

companies Gaucho, S.A (“Gaucho”) and Vaqueiro, S.A. (“Vaqueiro”.) The paper addresses three questions: 1. Is either of Gaucho or Vaqueiro a controlled foreign corporation? Or both? 2. Are any of the shareholders U.S. shareholders with respect to either corporation? 3. How much subpart F income must each shareholder recognize for 2015? I. Facts: The Brazilian companies, Gaucho and Vaqueiro, are treated as corporations for U.S federal income tax purposes. Each of companies has earned $1 million in interest

Most equity carve-outs do not require shareholder approval and require only approval by the parent company’s and subsidiary company’s boards of directors. More complicated corporate law considerations, particularly those related to fiduciary duties, typically arise following the closing of an equity carve-out, especially if the parent retains a significant equity interest in the subsidiary. Shareholder Approval The question of whether shareholder approval is required to implement an equity carve-out

Management is to projection, to plan, to coordinate, to arrange, and control the activity of others to achieve the desired goal of an organisation. In that manager have to perform some activities as they effectively and efficiently organize work with others. For instance, the top manager of United airlines and continental airlines had made a slogan lets fly together, this made them worlds largest airline. The CEO of both companies used merger strategy to achieve goals of making them merge airline

As a USX shareholder, how credible a spokesperson do you consider Icahn to be on this issue? 3. What restructuring option – Icahn’s spin-off proposal or the company’s targeted stock proposal – will create the most value for shareholders? For creditors? For the firm’s other stakeholders? 4. For what kind of companies is targeted stock most appropriate? Least appropriate

the divergence of objectives between managers and shareholders has been attributed to separation of ownership (shareholders) and control (management) in corporations. As a consequence, agency problems