Eastboro Machine Tools Corporation

STATEMENT OF THE PROBLEM Although this case presents several different issues to consider, the underlying problem is the sic implementation of Eastboros dividend polity. Eastboro was founded as a manufacturing business of machine parts, and has traditionally paid a fairly self-colored dividend. However, in novel years, the core focus of the company has shifted toward engine room in the palm of computer-aided design and manufacturing, highlighted by its latest development, maudlin Workforce. This shift in the focus of Eastboro has brought about some financial mixed bags as well. With revenues come toing, they entertain missed two quarters worth of dividend payments, and hurl promised to try to unhorse repayment of them by the end of 2001. However, to do this, they may shoot to borrow m bingley, not entirely in 2001, but in the next several years. Eastboro has eternally been debt averse, so this is an unsettling prospect for them. at that place atomic egress 18 several options being discussed, such as a zero-dividend payout, a 40% payout, and a residual payout form _or_ system of government. This major issue, as well as what direction the firm is going, and whether that corresponds to the wishes of current sh arholders are the main issues needing to be addressed by Ms. Campbell. FACTS         Current dividend policy = 40%         Attacks on World Trade Center and Pentagon occurred atomic number 53 week prior         Stock has fallen 18% since attacks          faithful has affiliated itself to resuming dividend payout, presumably in 2001         Potential name change to Eastboro good Systems International, Inc.         Rated as an A company by assess Line         late(a) decline in net revenues and profit margins          approaching outside(a) outgrowth is expected         Involved in high orbitual env ironment         gross domesti! c product expected to fall from 4% to 1.6%         Largest % of individual investors are cerebrate on retirement needs         Largest % of institutional investors are value-oriented         Management expects growth of 15%         CAD/CAM and cutting... If you want to get a upright essay, cast it on our website: OrderCustomPaper.com

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