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    Finance Case Studyassessing The Goal of Sports Products Inc - Compress

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    shabbir hussain
    The management of Sports Products Inc. is facing scrutiny over its actions. According to documents, the company's stock price has declined nearly 45% over the past 4 months, and at the same time the company's profits have been rising. Shareholders receive dividends in the form of cash but this company has never paid dividends during its 50-year history. Questions have been raised about why the company's stock price is falling as profits rise. Management asserts that shareholders' sole interest is maximizing shareholder wealth, as measured by share price. However, critics argue that short-term profit-seeking is not always in the long-term best interests of shareholders or the company.

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    © All Rights Reserved
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    Finance Case Studyassessing The Goal of Sports Products Inc - Compress

    Uploaded by

    shabbir hussain
    44 views6 pages
    The management of Sports Products Inc. is facing scrutiny over its actions. According to documents, the company's stock price has declined nearly 45% over the past 4 months, and at the same time the company's profits have been rising. Shareholders receive dividends in the form of cash but this company has never paid dividends during its 50-year history. Questions have been raised about why the company's stock price is falling as profits rise. Management asserts that shareholders' sole interest is maximizing shareholder wealth, as measured by share price. However, critics argue that short-term profit-seeking is not always in the long-term best interests of shareholders or the company.

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    Finance case study

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    finance-case-studyassessing-the-goal-of-sports-products-inc_compress

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    The management of Sports Products Inc. is facing scrutiny over its actions. According to documents, the company's stock price has declined nearly 45% over the past 4 months, and at the same time the company's profits have been rising. Shareholders receive dividends in the form of cash but this company has never paid dividends during its 50-year history. Questions have been raised about why the company's stock price is falling as profits rise. Management asserts that shareholders' sole interest is maximizing shareholder wealth, as measured by share price. However, critics argue that short-term profit-seeking is not always in the long-term best interests of shareholders or the company.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    44 views6 pages

    Finance Case Studyassessing The Goal of Sports Products Inc - Compress

    Uploaded by

    shabbir hussain
    The management of Sports Products Inc. is facing scrutiny over its actions. According to documents, the company's stock price has declined nearly 45% over the past 4 months, and at the same time the company's profits have been rising. Shareholders receive dividends in the form of cash but this company has never paid dividends during its 50-year history. Questions have been raised about why the company's stock price is falling as profits rise. Management asserts that shareholders' sole interest is maximizing shareholder wealth, as measured by share price. However, critics argue that short-term profit-seeking is not always in the long-term best interests of shareholders or the company.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 6

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    Co`oahudof Jd`o`kh# ko{h {~xnt ? Bxft 5<?<

    Jgu cguh ko{h {~xndh{ o`n x{hjxf ~hy~{ zd{d~2 i~~|2''@oudco`IE.kgc

    Ko{h2 O{{h{{d`a ~ih Agof gj [|gu~{ \ugnxk~{& D`k.


    Fguh` [haxouo o`n Nofh Bgi`{g` eg~i gum jgu [|gu~{ \ugnxk~{& D`k& o cobgu |ugnxkhu gj 
    ego~d`a hqxd|ch`~ o`n okkh{{gudh{ Fguh` gum{ o{ o kfhudkof o{{d{~o`~ d` ~ih Okkgx`~d`a
    Nh|ou~ch`~& o`n Nofh gum{ o{ o |okmoahu d` ~ih [id||d`a Nh|ou~ch`~ Nxud`a ~ihdu fx`ki
    euhom g`h not& ~iht ehao` ~ofmd`a oegx~ ~ih kgc|o`t Nofh kgc|fod`hn ~io~ ih ion ofot{
    gumhn ioun ~utd`a `g~ ~g o{~h |okmd`a co~hudof{ o`n hjjdkdh`~ft o`n kg{~#hjjhk~dzhft
    |hujgucd`a id{ bge D` {|d~h gj id{ hjjgu~{ o`n ~ig{h gj id{ kg#gumhu{ d` ~ih nh|ou~ch`~& ~ih
    jduc—{ {~gkm |udkh ion nhkfd`hn `houft .5 |hu {iouh gzhu ~ih |o{~ 4 cg`~i{ Fguh` d`ndko~hn
    ~io~ {ih {iouhn Nofh—{ jux{~uo~dg`& |ou~dkxfouft ehkox{h ~ih jduc—{ |ugjd~{ ion ehh` ud{d`a
    @hd~ihu kgxfn x`nhu{~o`n qit ~ih jduc—{ {~gkm |udkh qo{ joffd`a o{ |ugjd~{ ug{h Fguh`
    { hh` ngkxch`~{ nh{kuded`a ~ih jduc—{ |ugjd~ {ioud`a |fo` x`nhu idki
    d`ndko~hn ~io~ {ih ion {hh`
    off co`oahu{ huh |ou~dofft kgc|h`{o~hn g` ~ih eo{d{ gj ~ih jduc—{ |ugjd~{. [ih [i h {xaah{~hn
    ~io~ coteh d~ o{ |ugjd~ ~io~ o{ dc|gu~o`~ ~g co`oahch`~& ehkox{h d~ nduhk~ft ojjhk~hn
    ~ihdu |ot. Nofh {odn& ‖^io~ ngh{`—~ comh {h`{h& ehkox{h ~ih {~gkmigfnhu{ g` ~ih jduc
    [igxfn`—~ co`oahch`~ ng qio~—{ eh{~ jgu {~gkmigfnhu{7 [gch~id`a—{ qug`a/– Fguh`
    uh{|g`nhn& ‖Qhff& coteh ~io~ hy|fod`{ qit ~ih kgc|o`t io{`—~ kg`khu`hn d~{hfj qd~i ~ih
    {~gkm |udkh Fggm& ~ih g`ft |ugjd~{ ~io~ {~gkmigfnhu{ uhkhdzh ouh d` ~ih jguc gj ko{i
    ndzdnh`n{& o`n ~id{ jduc io{ `hzhu |odn ndzdnh`n{ nxud`a d~{ 5<#thou id{~gut Qh o{
    {~gkmigfnhu{ ~ihuhjguh ng`—~ nduhk~ft eh`hjd~ jugc |ugjd~{. ^ih g`ft qot qh eh`hjd~ d{ jgu ~ih
    {~gkm |udkh ~g ud{h.– Nofh kidchn d`& ‖^io~ |ugeoeft hy|fod`{ qit ~ih jduc d{ ehd`a {xhn et
    {~o~h o`n jhnhuof h`zdug`ch`~of gjjdkdof{ jgu nxc|d`a |gffx~o`~{ d` ~ih onbokh`~ {~uhoc Qit
    {|h`n cg`ht jgu |gffx~dg` kg`~ugf7 D~ d`kuho{h{ kg{~{& fghu{ |ugjd~{& o`n ~ihuhjguh fghu{
    co`oahch`~—{{ hou`d`a{/– 
    co`oahch`~—

    Fguh` o`n Nofh uhofdrhn ~io~ ~ih fx`ki euhom ion h`nhn o`n ~iht cx{~ qxdkmft uh~xu` ~g
    gum Ehjguh fhozd`a& ~iht nhkdnhn ~g chh~ ~ih `hy~ not ~g kg`~d`xh ~ihdu nd{kx{{dg`

    _xh{~dg`{ o`n O`{qhu{/

    o. Qio~ {igxfn ~ih co`oahch`~ gj [|gu~{ \ugnxk~{ D`k. |xu{xh o{


    d~{ gzhuudnd`a agof7 Qit7

    qhof~i& o{
    Kxuuh`~ ~ihgut o{{hu~{ ~io~ ~ih jduc{— |ug|hu agof d{ ~g coydcdrh {iouhigfnhu{— qhof~i&
    cho{xuhn et ~ih coumh~ |udkh gj ~ih jduc—{ {~gkm. O jduc—{ {~gkm |udkh uhjfhk~{ ~ih ~dcd`a& {drh
    o`n ud{m gj ~ih ko{i jfg ~io~ d`zh{~gu{ hy|hk~ o jduc ~g ah`huo~h gzhu ~dch [g jd`o`kdof
    co`oahu{ {igxfn x`nhu~omh g`ft ~ig{h ok~dg`{ ~io~ ~iht hy|hk~ dff d`kuho{h ~ih zofxh gj ~ih
    jduc—{ jx~xuh ko{i jfgq. ^ihgudkof o`n hc|dudkof ouaxch`~{ {x||gu~ ~ih o{{hu~dg` ~io~
    co`oahu{ {igxfn jgkx{ g` coydcdro~dg` {iouhigfnhu hof~i [iouhigfnhu{ gj o jduc ouh

    i~~|2'' oudco`
    i~~|2''@oudco`IE.kgc

    {gch~dch{ koffhn uh{dnxof kfodco`~{&


    kfodco`~{& cho`d`a ~io~ ~iht iozh kfodc{ g`ft g` o`t gj ~ih jduc—{
    ko{i jfg{ ~io~ uhcod` oj~hu hc|fgthh{& {x||fdhu{& kuhnd~gu{& agzhu`ch`~{ o`n g~ihu
    {~omhigfnhu{ ouh |odn d` jxff O{ tgx {hh& {iouhigfnhu{ {~o`n o~ ~ih h`n gj ~id{ fd`h {g dj ~ih
    jduc ko``g~ |ot ~ih {~omhigfnhu{ jdu{~& {iouhigfnhu{ uhkhdzh `g~id`a/ [iouhigfnhu{ of{g ehou
    cg{~ gj ~ih ud{m gj ux``d`a ~ih jduc [g dj jduc{ ndn `g~ co`oah ~g coydcdrh {iouhigfnhu{
    hof~i& d`zh{~gu{ gxfn iozh fd~~fh d`kh`~dzh ~g okkh|~ ~ih ud{m{ `hkh{{out jgu o ex{d`h{{ ~g
    {xkkhhn

    e. Ngh{ ~ih jduc o||hou ~g iozh o` oah`kt |ugefhc7 Hy|fod`.

     Th{ D` ~id{ ko{h&% ~ih jduc!{ {~gkm |udkh ion nhkfd`hn `houft .5 |hu {iouh gzhu ~ih |o{~ 4
    cg`~i{% o`n o~ ~ih {och ~dch %~ih jduc!{ |ugjd~{ ion ehh` ud{d`a% Qio~ ~ih
    {iouhigfnhu{ uhkhdzh ouh d`d ` ~ih jguc gj ko{i ndzdnh`n{& o`n ~id{ jduc io{ `hzhu |odn
    ndzdnh`n{ nxud`a d~{ 5<#thou
    5<#thou id{~gut Eo{hn g` io~ D ug~h ehjguh& {iouhigfnhu{
    {iouhigfnhu{ hof~i d{
    uhnxkd`a nxud`a ~id{ |hudgn o`n d~ {ig{ ~io~ ~ihuh d{ o` oah`kt |ugefhc

    D` onnd~dg`& co`oahch`~!{ ok~dg`{ d` ko{h gj |gffx~dg` kg`~ugf{ {ig o |ugjd~ coydcdro~dg`


    ~ut& idki cho`{ ~iht ouh ~utd`a ~g coydcdrh ~ihdu {ofout& uo~ihu ~io` o` o~~hc|~ ~g
    coydcdrh {iouhigfnhu{— qhof~i){~gkm
    qhof~i){~gkm |udkh$

    k. Hzofxo~h ~ih jduc—{ o||ugoki ~g |gffx~dg` kg`~ugf. Ngh{ d~ {hhc


    ~g eh h~idkof7 Qit cdai~ d`kxuud`a ~ih hy|h`{h ~g kg`~ugf
    |gffx~dg` eh d` ~ih eh{~ d`~huh{~{ gj ~ih jduc—{ gq`hu{ nh{|d~h d~{
    `hao~dzh hjjhk~ g` |ugjd~{7

    D~ |g{{deft io{ ~g {dnh{/ Qh ng`—~ m`g ih~ihu ~ihdu ok~{ huh |fo``hn gu okkdnh`~of D~ d{
    kfhou ~io~ ~iht ouh zdgfo~d`a ~ih fo d~i nxc|d`a |gffx~o`~{ d` ~ih onbokh`~ {~uhoc o`n
    nocoad`a ~ih h`zdug`ch`~ Kfhouft& [|gu~{ \ugnxk~{ io{ `g~ g`ft ng`h oaod`{~ ~ih fo ex~
    of{g h{~oefd{ihn |ggu {~o`noun{ gj kg`nxk~ o`n cguof bxnach`~ [g o~ eg~i {d~xo~dg`{& ~ih
    kgc|o`t!{ co``hu ngh{ `g~ {hhc ~g eh h~idkof D`kxuud`a ~ih hy|h`{h ~g kg`~ugf |gffx~dg`
    eh d` ~ih eh{~ d`~huh{~{ gj ~ih jduc—{ gq`hu{ ehkox{h axouo`~hh{ ~ih jduc!{ fg`a ~huc |ugjd~{
    d` ko{h gj {gkdof uh{|g`{dedfd~t

    n. Ngh{ ~ih jduc o||hou ~g iozh o` hjjhk~dzh kgu|guo~h agzhu`o`kh


    {~uxk~xuh7 Hy|fod` o`t {igu~kgcd
    {igu~kgcd`a{.
    `a{.

    D~ {hhc{ `g~/ ^ih cg{~ dc|gu~o`~ {igu~kgcd`a d{ ~ih co`oahch`~ ~hoc ig ng`—~
    comh aggn nhkd{dg`{ jgu coydcdrd`a {iouhigfnhu{— qhof~i
    qhof~i

    i~~|2''@oudco`IE
    i~~|2''@oudco`IE.kgc

    h. G` ~ih eo{d{ gj ~ih d`jguco~dg` |ugzdnhn& qio~ {|hkdjdk


    uhkgcch`no~dg`{ qgxfn tgx gjjhu ~ih jduc7

     Kgc|ft d~i off fo{ o{ hff o{ okkh|~hn {~o`noun{ gj kg`nxk~ gu cguof bxnach`~
     H{~oefd{i o kgu|guo~h h~idk{ |gfdkt& ~g eh uhon o`n {da`hn et off hc|fgthh{
     Nh{da`d`a o |otch`~ {t{~hc ~io~ ~dh{ co`oahch`~ ~hoc o`n hc|fgthh{! {ofout ~g
    {iouh |udkh gu o |hujguco`kh eo{hn {kofh

    i~~|2''@oudco`IE

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