ipl-logo

Whitbread Case Summary

975 Words4 Pages

Whitbread have been expanding their two main brands Premier inn and Costa. The graph above shows the relationship between the gearing ratio and the company’s share price, from 2011 to 2014 the share price has been increasing as the company lowers its debt. This suggests that the value of the company increase as it utilises available internal finance. This could be result of the company following the Pecking Order Theory. The Pecking Order Theory suggests that the company looking to finance its investments will firstly utilise available internal funds before seeking external sources of finance (Donaldson 1961). After all the internal funds have been exhausted the company will then look for external sources of finance to fund investments. Myers (1984) suggests that firms prefer to use internal funds to avoid informational problems. When internal funds are insufficient to meet the financial needs firms will turn to debt and then equity which is at the top of the pecking order. The asymmetry of the information between the company and the capital market will make managers aware that the company has been undervalued. The theory assumes that managers have private information of the market …show more content…

Over the past five years the dividend pay-out ratio has been increasing steadily and they have managed to pay out preferred dividends more than 2 times in a year. Using Whitbread’s financial data, the writer will be calculating the dividend pay-out ratio (dividends per share/ earnings per share*100) and dividend cover (earnings per share/ dividends per share). The dividend pay-out ratio provides an indication of how much money a company is returning to its shareholders versus how much money they are reinvesting into growth. The dividend cover ratio measures a company’s ability to pay off its preferred

Show More
Related

Dred Scott Case Summary

550 Words | 3 Pages

Summary of Source The editorial discloses the power that the Court adheres to and whether it should be accountable for the decision making of fugitive slaves. The writer had discussed that in no way did the verdict of the Dred Scott case follow an act of law, but was merely “nullity.” During the settlement, they decided that since Dred Scott’s master had brought him on free land in Missouri or of the United States without having a citizenship, which resulted in him having no case. It continues on to say that the jurisdiction of the case was influenced by opinion, which did not involve any legalities.

Read More

Donald Cowart Case Summary

1301 Words | 6 Pages

Imagine having been burned over 65-68% of your body. It would probably hurt right? On July 1973 Dax, an air piolet at the time, was injured in a propane gas explosion that took his life and took the life of his father and burned over 65% of his body that is more the two thirds of his body. Due to the accident he was left blind and unable to the use of his hands. For over 10 months Dax went under forceful treatment.

Read More

Shirley Mckie Case Summary

112 Words | 1 Pages

A case study that supports Kirks theory is that of Shirley McKie. McKie is a former Scottish Police officer, who was accused of leaving her thumb print on a door frame of a murder crime scene, in January 1997. On the 6 January 1997, the body of Marion Ross was found in her home, in Kilmarnock. She had multiple stab wounds, resulting from what was presumed to be an act of housebreaking.

Read More

Longhorn Industries Inc. V. Widget Corporation Case Summary

1267 Words | 6 Pages

MBA625_FINAL PROJECT 1 November, 2015 Internal Analysis: Longhorn Industries, Inc. v. Widget Corporation Widget Corporation has recently received a summons for a suit brought by a customer in Texas. While seeking legal counsel, an internal analysis was conducted to better understand the potential legal issues with this case. This report provides that analysis, looking at the procedural and substantive aspects of this suit. Background Widget Corporation Located in California, Widget Corporation (“Widget”) is incorporated in Delaware, a state where more than half the Fortune 500 companies are incorporated. (Top 5 Reason to Incorporate in Delaware, 2007)

Read More

Dan White's Case Summary

139 Words | 1 Pages

On November 10, 1978, Dan White voluntarily left his position on the San Fransisco Board of Supervisors as a police and firefighter. This was because the annual salary was not enough to provide for White's family. A couple of weeks later, on November 27th, the press conference was about to announce White's replacement when he entered though a window avoiding the metal detector and shot Mayor Moscone and Harvey Milk who was the member of the Board. This became known as "The Twinkie Defense". White's legal team pronounced that White was suffering untreated depression and that decreased his capacity to know right from wrong.

Read More

Martha Stewart Case Summary

1076 Words | 5 Pages

United States vs. Martha Stewart and Peter Bacanovic occurred in 2004, and it is often regarded to be one of this century’s most sensational court cases. The trial occurred in the United States District Court for the Southern District of New York, and Judge Miriam Goldman Cedarbaum presided over the case. Robert G. Morvillo served as Ms. Stewart’s attorney, and Richard M. Strassberg served as the attorney of Mr. Bacanovic. The lead prosecution attorney was Karen Patton Seymour. Perhaps, though, it is best to begin by inspecting the facts of the case.

Read More

What Is Jp Morgan Chase & Company's Capital Structure?

252 Words | 2 Pages

JP Morgan Chase & Co is the largest financial instruction in the United States, and the sixth largest financial institution in the world. The capital structure of the organization is founded predominantly on equity. Even though JP Morgan Chase & Co has such a high total debt to total equity rate (226.84%) it has only offered up 36% of the organizations possession of the for sales by means of shares in stocks to outside investors. JP Morgan Chase & Co relies heavily on equity for the funding of its capital structure. What this says about the risk factor of JP Morgan Chase & Co’s capital structure is that the organization is still in control of the vast majority of its company.

Read More

Sn Colonnade Financial Analysis

3171 Words | 13 Pages

The introduction of the dividend pay-out policy will come at the appropriate time as the company is expected to be profitable and they will be investing surplus profits back into the company. However, from a different perspective, the company can declare scrip dividends in order to have more funds that can be reinvested back into the company to have more. It is important to note that once they have decided to adopt the scrip dividend policy, the relevant shares cannot be converted back to earnings as it will increase the share capital and change the level of ownership. Please note • Appendix B: Forecasted financial

Read More

Whitewave Foods Case

1805 Words | 8 Pages

2) Company Vision and Mission As a newly independent company, The WhiteWave Foods Company does not have all the trappings of a traditional, more-established firm. In that vein, it does not call out a vision or mission statement on its website. It does, however, reference the same forward-looking statement multiple times, to answer the question “Why we matter?” : “We want to change the way the world eats for the better” ("WhiteWave Foods," 2015).

Read More

Analysis Of Financial Analysis: Whitbread PLC

3531 Words | 15 Pages

This, joined with its great cash-flow, has driven the board to suggest an entire year profit increment of 19.9%. This amplifies its reputation of double digit development, with sales growing by 11.4% in the course of the most recent five years and EPS and dividend per share becoming by 14.7% and 13.5% respectively. (Whitbread Investors,

Read More

Modest Growth Essay

582 Words | 3 Pages

This approach is used to favour the shareholders, but it does not contribute to long-term company growth. With a huge portion of company’s earning being distributed to shareholders, the company does not retain much cash to enable to do more research and innovation, and to expand their businesses to generate more revenues in the future. This approach is destructive to the company’s future, therefore cutback on the company’s ability to generate long-term shareholders’

Read More

Johnson & Johnson Case Analysis

719 Words | 3 Pages

Johnson & Johnson is a global, multibillion-dollar brand that has continued growth in the three market segments that include the consumer, pharmaceutical, and medical devices and diagnostics divisions. Out of the three, J&J have the highest sales within the pharmaceutical segment. Their success has been noted not only in sales and innovative products, but the efforts put towards diversity and inclusion. J&J is a company that values diversity and inclusion. They prove this by embedding diversity into all of their business practices.

Read More

Johnson & Johnson Case Analysis

1623 Words | 7 Pages

Background and Introduction: Johnson & Johnson is an American multinational organization that was founded in 1886. This company consists of pharmaceutical and consumer packaged goods. Johnson & Johnson has been headquartered in New Jersey. This organization has operations on over 57 countries and their products are sold on over 175 countries. Their calendar has a worldwide sale of $65 billion for 2011.

Read More

Capstone Reflection

1612 Words | 7 Pages

As the results (Appendix 1) shows, leverage and PB ratio have positive relationship with dividend payout ratio, while, risk, growth, profitability and size have negative relationship with dividend payout ratio. According to the results, banks can adjust the dividends declared corresponding to its situations. The project also introduces the relationship between the dividends and information-sensitive depositors (Appendix 2). These all are helpful for banks to make dividends decision and find the optimal payout ratio for the development. 2.

Read More

Over-Investment Theory

1427 Words | 6 Pages

These significant theories in enhancing the financial decision include over-investment theory and under-investment theory. The underinvestment theory is built on the basis that insist on the negative effects of a firm in taking to high amount of corporate debt on the firm value. The over-investment theory also form a very significant component in financial decision and it applies in those cases where there are limited growth opportunities. It also applies when there is high relationship to the free cash flows.

Read More

More about Whitbread Case Summary

Open Document