Linear technology

facts: - clubs 3rd quarter financials for 2003 was good- ingathering from 3%-7% -emerging from recession -unclear how whole work wud be for for remainder of year -shareholders had rewarded Linear for unhurt growth and tranquillize margins over the years- sprout split- shareholders had a nice upshot on Linears -in bitterness of major drop in rude revenue, Linear held its margins thru cost acrid and major work shutdowns -employee stock option was not somethin brand-new to the company - hard currency ascend positive - not happeny, as compared to other companies in engine room sector -war was declared so did not know how the saving would be affected in 2002, despite the drop in sales and earnings, they increased devidend; because of consistent dividednts, -->investors put them in slenderly high category, seeing it as a source of income and growth potential.

- property was not earning enough income due to low interest military position ; consequently buybacks was preferred - Accumulated large cash repose ; cash was managed conservatively; no plans for aquisition - some investors urged to return the cash in impairment of special dividend, but he had the slump that only hardly a(prenominal) investors preferred this - Instututional investors (who hold about 40% of its shares )have an understanding of company; but despite the high cash reserves, their dividend seemed like a token. - it was in a good position only because it payed dividends in the technological sector - tax conditions were well-to-do - Rollins (CEO of Janus Capital, an institutional in vestor) said that tax implications prospero! us Linears policy to grow the dividend. On raising their dividend, Linear could come forth as less risky to the shareholders by lowering its right risk premium (i.e. thru unsystematic risk) -Intel and Maxim were benchmarks -Maxim and Linear were akin in size and financial performance. -Altouhgh dividends make shares less fickle and lead the companys investor base, long-term shareholders would prefer if the company...If you want to get a encompassing essay, order it on our website: OrderCustomPaper.com

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