Eastboro Machine Tools Corporation

STATEMENT OF THE PROBLEM Although this case presents some(prenominal) distinguishable issues to consider, the underlying problem is the coif implementation of Eastboros divid eat up polity. Eastboro was founded as a manufacturer of machine parts, and has traditionally paid a pretty substantial dividend. However, in wise years, the core focus of the confederacy has shifted toward technology in the plow of computer-aided design and manufacturing, racylighted by its up-to-the-minute development, Artificial Workforce. This shift in the focus of Eastboro has brought about close to financial exchanges as well. With revenues precipitateing, they socialise missed two quarters value of dividend payments, and have promised to try to begin repayment of them by the end of 2001. However, to do this, they may occupy to borrow m bingley, non only in 2001, alone in the next some(prenominal) years. Eastboro has always been debt averse, so this is an unsettling opinion for them. at that place nuclear number 18 several options being discussed, such as a zero-dividend payout, a 40% payout, and a residual payout policy. This major issue, as well as what direction the firm is going, and whether that corresponds to the wishes of catamenia shargonholders are the main issues needing to be addressed by Ms. Campbell. FACTS          underway dividend policy = 40%         Attacks on World Trade essence and Pentagon occurred one week prior          furrow has fallen 18% since attacks          degraded 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 range Line         late(a) decline in terminate revenues and profit margins         Future outside(a) offset is expected         Involved in high cyclical environment         gross interior(prenominal) product expected to fall from 4% to 1.6%         Largest % of individual investors are cerebrate on loneliness needs         Largest % of institutional investors are value-oriented          trouble expects growth of 15%          wiener/CAM and cutting... If you want to get a upright essay, order it on our website: Orderessay

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