For 22 consecutive years, Marston Corporation, a steel producer, has paid a quarterly dividend to its common shareholders. The annual dividend amount has ranged from 1 percent to 4 percent of the market price of Marston's common shares. Marston's board of directors decides not to declare a common dividend for the next three years. Its steel plants are over 40 years old, and several need to be updated or replaced. The board estimates the cost of updating or replacing its steel plants at $2.3 billion. Eliminating the common share dividend will result in Marston retaining an additional $634 million over a threeyear period. Marston currently has retained earnings of $1.2 billion. Marston's minority shareholders sue Marton's to force the board of directors to declare the dividend. Will their action be successful?
Answer to relevant QuestionsPomeroy Carnivals Co., Inc. (PCC), is a familyowned corporation that operates carnival rides at fairs and festivals. The founders of the business, Les and Clara Pomeroy, own 79 percent of the shares, and their three children ...Marvie, Kim, Clarence, and Goldie Tschetter purchased units in Huron Kitchen LLC, a limited liability company, which would construct and own a Country Kitchen restaurant in South Dakota. As members of an LLC, they had ...Joseph Crotty was a vice president of United Artists Communications, Inc. (UA), a corporation with equity securities registered under the Securities Exchange Act of 1934. Crotty was the head film buyer of UA's western ...Amenity, Inc., was incorporated with 1 million authorized shares, which were issued to Capital General Corporation (CGC) for $2,000. CGC distributed 90,000 of those shares to about 900 of its clients, business associates, ...Walter Piecyk, a broker and analyst with securities firm Fulcrum Global Partners, heard a rumor that Nokia Corp., the largest customer of RF Micro Devices Inc., was going to delay equipment orders from RF Micro. After ...
Post your question