Scribd Logo
Upload

Welcome to Scribd!

  • 93 views

    Rockboro Case

    Uploaded by

    Van Arloe Yu
    Rockboro Case Questions discusses considerations for a share buyback program at Rockboro, including the company's aversion to debt and whether the current share price is undervalued. It also examines how shareholders and creditors may react to a repurchase announcement, noting both positive and negative potential impacts. Finally, it outlines pros and cons of Rockboro's corporate image advertising campaign and proposed corporate name change.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Rockboro Case

    Uploaded by

    Van Arloe Yu
    93 views4 pages
    Rockboro Case Questions discusses considerations for a share buyback program at Rockboro, including the company's aversion to debt and whether the current share price is undervalued. It also examines how shareholders and creditors may react to a repurchase announcement, noting both positive and negative potential impacts. Finally, it outlines pros and cons of Rockboro's corporate image advertising campaign and proposed corporate name change.

    Original Description:

    Recommendation on Share Buyback

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Rockboro Case Questions discusses considerations for a share buyback program at Rockboro, including the company's aversion to debt and whether the current share price is undervalued. It also examines how shareholders and creditors may react to a repurchase announcement, noting both positive and negative potential impacts. Finally, it outlines pros and cons of Rockboro's corporate image advertising campaign and proposed corporate name change.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    93 views4 pages

    Rockboro Case

    Uploaded by

    Van Arloe Yu
    Rockboro Case Questions discusses considerations for a share buyback program at Rockboro, including the company's aversion to debt and whether the current share price is undervalued. It also examines how shareholders and creditors may react to a repurchase announcement, noting both positive and negative potential impacts. Finally, it outlines pros and cons of Rockboro's corporate image advertising campaign and proposed corporate name change.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 4

    Rockboro Case Questions

    1. What are the considerations for a share buyback program?


    2. How might various providers of capital (shareholders and
    creditors) react to a share repurchase announcement?
    3. What would the impact be on financing need and unused debt
    capacity (propose your own share repurchase plan)?
    4. What do you think of the corporate image advertising
    campaign and the corporate name change?
    Considerations for a share buyback
    program
    • Company has aversion to debt (max 0.4 DE ratio)
    • Is share price undervalued? (Future growth vision, current price
    = $15.25)
    • High awareness of firms but low outlook. Will share buyback
    lead to positive response based on the type of shareholders?
    Shareholders and creditors react to a
    share repurchase announcement
    Shareholders Creditors
    • (+) Tax reduction • (-) Increased Debt to Equity
    • (+) Short term traders to ratio is riskier
    benefit from higher stock • (-) Higher EPS may be
    price misleading
    • (-) Long term Shareholders
    who expect regular dividends
    • (-) Uncertainty in actual share
    buyback
    Corporate image advertising campaign
    and the corporate name change
    Pros Cons
    • Signals to shareholders the • The change is costly and has
    commitment to the new no empirical evidence on
    focused strategy and future impact on stock price
    growth

    You might also like

    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy