Eastboro Corporation

STATEMENT OF THE PROBLEM Although this case presents several contrastive issues to consider, the underlying problem is the amend implementation of Eastboros dividend insurance policy. Eastboro was founded as a manufacturer of apparatus parts, and has traditionally paid a fairly substantial dividend. However, in new-fangled years, the core focus of the party has shifted toward technology in the wield of computer-aided design and manufacturing, highlighted by its a la mode(p) development, Artificial Workforce. This shift in the focus of Eastboro has brought about or so financial changes as sound. With revenues falling, they subscribe missed two quarters worthy of dividend payments, and have promised to try to pose out repayment of them by the end of 2001. However, to do this, they may require to borrow m unitaryy, not only in 2001, but in the future(a) several years. Eastboro has always been debt averse, so this is an unsettling prospect for them. thither ar several options being discussed, such(prenominal) as a zero-dividend payout, a 40% payout, and a respite payout policy. This major issue, as well as what direction the upstanding is going, and whether that corresponds to the wishes of current sh beholders are the important issues needing to be addressed by Ms. Campbell. FACTS         Current dividend policy = 40%         Attacks on World commerce Center and Pentagon occurred one workweek prior         Stock has fallen 18% since attacks         Firm has attached itself to resuming dividend payout, presumptively in 2001         Potential remark change to Eastboro in advance(p) Systems International, Inc.

        Rated as an A company by Value Line          new-made pooh-pooh in net revenues and meshwork margins         Future world(prenominal) reaping is judge         Involved in high cyclical environment          clear domestic product expected to fall from 4% to 1.6%         Largest % of case-by-case investors are focused on retirement needs         Largest % of institutional investors are value-oriented         Management expects growth of 15%         CAD/CAM and cutting... If you want to fetch a ample essay, invest it on our website: Ordercustompaper.com

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