Linear technology

facts: - clubs 3rd quarter financials for 2003 was good- produce from 3%-7% -emerging from recession -unclear how real work wud be for for remainder of year -shareholders had rewarded Linear for loyal growth and tranquillize margins over the years- storehouse split- shareholders had a nice plan on Linears -in bitterness of major drop in megascopic revenue, Linear held its margins thru cost acrid and major work shutdowns -employee stock option was not somethin brand-new to the company - interchange settle positive - not essayy, as compared to other companies in technology sector -war was declared so did not know how the speech would be affected in 2002, despite the drop in sales and earnings, they increased devidend; because of consistent dividednts, -->investors put them in close to high category, seeing it as a source of income and growth potential.

- capital was not earning enough income due to low interest come out ; consequently buybacks was preferred - Accumulated large cash sense of balance ; cash was managed conservatively; no plans for aquisition - some investors urged to return the cash in impairment of special dividend, but he had the motion picture 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 piazza only because it payed dividends in the technological sector - tax conditions were well-fixed - Rollins (CEO of Janus Capital, an institutiona l investor) said that tax implications pros! perous Linears policy to ascent 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 run the companys investor base, long-term shareholders would prefer if the company...If you want to get a near essay, order it on our website: OrderCustomPaper.com

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