Tremblay Corporation is reviewing its capital budget for the upcoming year. It has paid a $3.00 dividend per share (DPS) for the past several years, and its shareholders expect the dividend to remain constant for the next several years. The company’s target capital structure is 60% equity and 40% debt; it has 1,000,000 shares of…
When you go on the Web to find a firm’s beta, you do not know how recently it was computed, what index was used as a proxy for the market portfolio, or which time series of returns the calculations used. Earlier in this chapter, it was shown that when we went on the Web to…
Several years ago, Dick and Barbara Harris were asked to attend an organizational meeting for a newly forming neighborhood babysitting cooperative. The idea was simple. Concerned and caring parents would join together in the cooperative and exchange babysitting services. Although they were not particularly interested in committing to trading babysitting favors, as their children were…
Write a professional reflection essay in which you discuss the process and outcomes of the selected project, as well as how your coursework culminated in the capstone project. This may include discussions of unforeseen problems or obstacles and any unexpected surprises. The essay should also discuss your identified strengths as well as problems that you…
Quaker Oats Co. made the most disastrous decision in the company’s history when it acquired the Snapple Beverage Corp. After several years of horrible financial results, Quaker sold its Snapple division at a loss in excess of a billion dollars. What went wrong? Pundits point to several factors, especially the super-competitive nature of the soft…
Teresa Harris worked as a manager at Forklift Systems Incorporated (Forklift), an equipment rental company, for two and one- half years. Charles Hardy was Forklift’s president. Throughout Harris’s time at Forklift, Hardy often insulted her because of her sex and made her the target of unwanted sexual innuendos. Hardy told Harris on several occasions, in…
David Lovejoy was a candidate in the 2009 election for sheriff of a New Hampshire county. His opponent was the incumbent sheriff, James Linehan. During the election campaign, the Portsmouth Herald published an article that contained the following: “A record provided to the Herald said Lovejoy was involved in a case of simple assault and…
As of June 1995, Little Caesar Enterprises, Inc. (LCE) had 536 franchises nationwide operating 2,867 carryout-type restaurants. LCE also owned and operated 1,000 carryout restaurants and 500 restaurants located in Kmart stores. Blue Line Distributing, Inc., purchased the necessary supplies for the restaurants, bundled them into single units, and sold them to the franchisees. In…
Gallop, Inc. is a toy manufacturer specializing in games for boys and girls aged eight to twelve. On March 30, Gallop had predicted first-quarter earnings of $.20 per share. On April 15, Gallop received a fax from its key distributor reporting a $10 million claim for personal injury of a nine-year-old child who was allegedly…
On behalf of himself and other similarly situated options investors, Rick Lockwood sued defendant, Standard & Poor’s Corporation (Standard & Poor’s), for breach of contract. Lockwood alleged that he and other options investors suffered lost profits on certain options contracts because Standard & Poor’s failed to correct a closing stock index value. Standard & Poor’s…
