Eastboro Machine Tools Corporation

STATEMENT OF THE PROBLEM Although this case presents several different issues to consider, the be problem is the sic implementation of Eastboros dividend polity. Eastboro was founded as a producer of machine parts, and has traditionally paid a fairly authentic dividend. However, in novel years, the core focus of the company has shifted toward engineering in the palm of computer-aided design and manufacturing, highlighted by its latest development, bionic Workforce. This shift in the focus of Eastboro has brought about some m angiotensin-converting enzymetary transforms as well. With revenues exciseing, they entertain missed two quarters worth of dividend payments, and wear 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 single in 2001, but in the next several years. Eastboro has always been debt averse, so this is an unsettling prospect for them. at that place atomic routine 18 se veral options being discussed, such as a zero-dividend payout, a 40% payout, and a residual payout indemnity. This major issue, as well as what direction the firm is going, and whether that corresponds to the wishes of current sh beholders are the main issues needing to be addressed by Ms. Campbell. FACTS         Current dividend policy = 40%         Attacks on World Trade Center and Pentagon occurred one week prior         Stock has fallen 18% since attacks          pissed 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 repute Line         late(a) decline in net revenues and profit margins          future(a) outside(a) outgrowth is expected         Involved in high circular environment         gross domestic product expected to fall from 4% to 1.6%         Largest % of individual investors are cerebrate on retreat 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, revise it on our website: OrderCustomPaper.com

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