Linear technology

facts: - clubs 3rd quarter financials for 2003 was good- harvest from 3%-7% -emerging from recession -unclear how tight work wud be for for remainder of year -shareholders had rewarded Linear for warm growth and tranquillize margins over the years- farm animal split- shareholders had a nice legal tender on Linears -in bitterness of major drop in vulgar revenue, Linear held its margins thru cost acrid and major work shutdowns -employee stock option was not somethin brand-new to the company - property flow positive - not happeny, as compared to other companies in engineering science sector -war was declared so did not know how the obstetrical delivery would be affected in 2002, despite the drop in sales and earnings, they increased devidend; because of consistent dividednts, -->investors put them in meagerly high category, seeing it as a source of income and growth potential.

- interchange was not earning enough income due to low interest localize ; consequently buybacks was preferred - Accumulated large cash residual ; cash was managed conservatively; no plans for aquisition - some investors urged to return the cash in impairment of special dividend, but he had the whim 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 pip only because it payed dividends in the technological sector - tax conditions were indulgent - Rollins (CEO of Janus Capital, an instit utional investor) said that tax implications! prosperous Linears policy to tack together 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 stretch the companys investor base, long-term shareholders would prefer if the company...If you want to get a broad essay, order it on our website: OrderCustomPaper.com

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