My final warning is not to become a CEO who sacrifices long-term shareholder equity considerations for short-term financial benefits.
Many firms deliberately manage their ratio of outstanding debt to shareholder equity.
The software maker has generated an average return on shareholder equity of around 40% over the last five years and has a pristine balance sheet.
Gannett investors should note that Gannett could be the next Tribune unless the CEO finds a way to move Gannett into growth markets which can increase shareholder equity.
This has created a new market for large existing vendors and emerging-growth providers of intelligent hardware, software applications and cloud services, while also generating billions in shareholder equity.
Return on equity (ROE), calculated by dividing net income by shareholder equity during a particular period, measures the return that management has produced on the money invested into the business.
That being said, while a dilution of shareholder equity may seem less than ideal to current investors, it will ensure the survival of the company (at least for the time being).
The ratio divides net income by shareholder equity.
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At least 100 companies have adopted a new plan since January 2012, while another 175 have amended their existing plans, says Kelly Crean, the governance, shareholder and equity team leader at benefits consultant Mercer.
Finally, all companies have long-term debt totaling no more than 50% of total capitalization (debt plus shareholder's equity) and a tax rate of at least 25%.
Stock market mispricing induces the controlling shareholder to sell overpriced equity, subsequently diverting resources to his benefit.
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Free cash flow growth rates combined with shareholder yield measures will dominate equity returns going forward.
Something strange happens when you shift the metric from Return on Assets to Return on Equity, or shareholder funds.
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Just the opposite, rising shareholder value requires an increase in equity value caused by profitable revenue growth.
One looming lawsuit against Hollinger International's directors is from Cardinal Value Equity Partners, a shareholder in Hollinger International.
It consequently learned the importance of return-on-equity and other measures of shareholder value.
Though a lot of private equity investors present themselves as shareholder advocates who, by virtue of controlling the purse strings can squeeze corporate managers, they're actually conflicted.
She was not the biggest shareholder in her web site, owning less equity than her financial backers like Softbank Capital.
Ssangyong Oil Refining, the biggest shareholder in Ssangyong Motor, boasts shareholders' equity of 1.1 trillion won and a capital-reserve ratio of 385%.
Reshaping the equity market structure is about creating shareholder value.
The idea seems to be only fueling shareholder ire as a PIPE would dilute existing stock equity and could deprive investors of a sale premium.
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Three of the nation's top investment banks, three of the nation's top law firms, a prominent auditor, the SEC, and a top private equity firm (Refco's largest shareholder) all failed to uncover the fraud.
We recently announced that Elevation Partners, a private equity firm, has become a minority shareholder in a newly formed company, Forbes Media, now the publisher of this magazine, Forbes.com and our other media properties.
It is that this is an equity that once destroyed an astonishing amount of shareholder value.
When converted, the bonds would become equity in Bear Stearns that would amount to 10% to 20% of its total equity, making China Construction Bank its largest shareholder, according to the Journal's account.
Ron Sommer, Telekom's boss once a hero of Germany's nascent equity culture, but now a perennial target of shareholder groups and the press has fallen out publicly with Deutsche Bank, Germany's biggest bank, which last week sold a huge batch of Telekom shares, sending the share price plummeting (see article).
Nevertheless, the need for shareholder liquidity beckons, particularly for banks such as First NBC that have raised capital from private equity firms and other institutional investors.
But then a French private-equity firm, PAI Partners, suddenly appeared as Atos Origin's largest single shareholder two weeks ago, and said it backed the management's strategy.
Now you can convert, like we do for corporate restructuring, some of that debt into equity if you reduce the face value and then you make the creditor effectively a shareholder in the house by giving them the upside to warrants.
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