Ford Family Members

Ford Family Members - $ 20 they would be expecting to...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
The interest of the ford family members holding class B shares is to have controlling power over the company’s decisions. In accordance with that being said, in the case the VEP in implemented, we believe the Ford Family members would choose shares. Ford Family members would choose to go with the option of shares as the Ford family member can increase equity in the company as well. Since ford is already expecting 40 % of the shareholders to take the cash options, it would mean that at
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: $ 20 they would be expecting to payout of $ 9.8 billion. • As ford is expecting to payout only $ 10 Billion the family members of ford will act based in the best interest of the company • Ford needs to increase p/e ratio as other companies in the same industry have more attractive figures in p/e ratio than ford. • We believe this may cause more investors to take the cash option. • Therefore ford family members would opt to go with shares to make sure that the stock does not fall....
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online