Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
At the end of the fiscal year ending June 30, 2003, Microsoft reported common equity of $64.9 billion on its balance sheet, with $49.0 billion invested in financial assets (in the form of cash equivalents and short term investments) and no financing debt. For fiscal year 2004, the firm reported $7.4 billion in comprehensive income, of which $1.1 billion was after-tax earnings on the financial assets.
This month Microsoft is distributing $34 billion of financial assets to shareholders in the form of a special dividend.
1. Calculate Microsoft's return on common equity (ROCE) for 2004.
2. Holding all else constant what would Microsoft's ROCE be after the payout of $34 billion?
3. Would you expect the payout to increase or decrease earnings growth in the future? Why?
4. What effect would you expect the payout to have on the value of a Microsoft share?
Solution to the Agency Conflict The government can acquire the following actions to protect itself and its interests. 1. Acquire monitoring costs E.g. the gover
Example of NPV Value A company is faced along with the following five (5) investment opportunities as: Cost NPV P.I = Total P.v
The table below gives data on the average number of football games attended per year among a population of students at a small college, separately by major. All students are in one
what are the scopes of this study
From the above case shareholders are very worried that apple is having too much cash,discuss six reasons why shareholders are so worried
Ask questioAustralian’s Speleological App Projectn #Minimum 100 words accepted#
Your daughter is a beginning freshman in high school. By the time she enters her freshman year in college, you would like to have savings accumulated to pay her tuition for her nex
A current radio advertisement states that the average American household has an average credit card debt of $25,000. Based on an APR (Annual Percentage Rate) of 18% (common for cre
Important points for Working Capital Cycle A lengthy working capital cycle is a sign of poor management of debtors and stock reflecting low turnover of debtors and stock and l
Internal finance can avoid the agency costs of debt and equity finance. In practice it is the most important source of funding. (a) Discuss potential problems of internal financ
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd