Unformatted text preview: considerations raised. You can use an organizing framework called FRICTO (flexibility, risk, income, control, timing, and other) on the dividend and share repurchase issues. The image advertising and name change issue will be recognized as another manifestation of the firm’s positioning in the capital markets, and the need to give effective signals. 6. Asset change = New debt + (Profits − Dividends) 7. the self-sustainable growth model: gss = (P/S × S/A × A/E)(1 − DPO) Where: gss is the self-sustainable growth rate P is net income S is sales A is assets E is equity DPO is the dividend-payout ratio This model describes the rate at which a firm can grow if it issues no new shares of common stock....
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- Spring '11
- Management, self-sustainable growth, share repurchase issues