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Essay / Research Paper Abstract
This 3 page paper is based on information supplied by the student in order to assess the risks that are present within Gage Roads Brewing (GRB) to Fosters Group Ltd (FGL) in the context of shareholders, creditors and the overall ability of the firm to survive. The bibliography cites 5 sources.
Page Count:
3 pages (~225 words per page)
File: TS14_TEGRBFBL.rtf
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Unformatted sample text from the term paper:
posing a risk to the shareholders. In both cases the companies are delivering a weak performance, in both cases there is a significant decrease in the sales and profits, this
is revivals in the 6 month sales figures from GRB where there was a drop in like for like sales of $32,647 in 2009 compared to the same period in
2008. The is also a drop at FGL, which despite a drop in the number of shares outstanding sees a reduction in the earnings per share of $0.33 per share,
which equates to an 86% drop. This may appear to indicate that Fosters is in the weaker passion, but this is not a direct compassion, and the drop in revenues
at GRB may have a much more significant impact on the earnings level (Chadwick, 2005). However, FBL have a particular weakness, while it
is noted that GRB have been unable to increase the number of distribution outlets and that there is the impact of a lag in sales resulting from a change in
distribution partners, FBL has a wine business that is described as failing. However, it may also be argued that FBL are using dividend signalling in order to communicate the managements
faith and confidence in the future with the way that the dividend payout ratio has increased significantly and although FBL many appear to be in the weaker poison at the
current time, with the changes that are being made they also appear to have the better potential, with the strong brand portfolio and the in the US and global market.
When looking at the risk to creditors GRB may present a greater risk, there ahs been capital raising taking with the issuance of more shares through a rights issue, the
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