Pizza brother's, Inc., through its subsidiaries, operates as a pizza company in the United States and...

  

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Pizza brother's, Inc., through its subsidiaries, operates as a pizza company in the United States and internationally. It operates through three segments: U.S. Stores, International Franchise, and Supply Chain. The company offers pizzas under the Bro's brand name through company-owned and franchised stores. It also provides oven-baked sandwiches, pasta, boneless chicken and chicken wings, bread and dips side items, desserts, and soft drink products. As of January 2, 2022, the company operated approximately 5 thousand stores in 40 markets. The company was founded in 1990 and is based in Colorado. For the year 2021 the company presented the following abbreviated results and balance sheet items: Revenues 4300 Gross Profit 1200 Operating Income 750 Interest expenses 50 Taxes 175 Total Assets 2500 Current Liabilities 500 Long term debt 1000. Common stock 500 Retained Earnings 350 Net income 2021 150 The company has 500 thousand shares outstanding at a par value of 1000€. The market value of the shares today is 7500€ MC Andersen, who has 10% of the shares is proposing to make a dividend payment in cash for 30 Million MIE Bettermore, the CEO, holding 1 % of the shares is proposing to make a stock dividend with a value of 30 Million. You are the CFO of the company, so they are requesting you to prepare: Pizza brother's, Inc., through its subsidiaries, operates as a pizza company in the United States and internationally. It operates through three segments: U.S. Stores, International Franchise, and Supply Chain. The company offers pizzas under the Bro's brand name through company-owned and franchised stores. It also provides oven-baked sandwiches, pasta, boneless chicken and chicken wings, bread and dips side items, desserts, and soft drink products. As of January 2, 2022, the company operated approximately 5 thousand stores in 40 markets. The company was founded in 1990 and is based in Colorado. For the year 2021 the company presented the following abbreviated results and balance sheet items: Revenues 4300 Gross Profit 1200 Operating Income 750 Interest expenses 50 Taxes 175 Total Assets 2500 Current Liabilities 500 Long term debt 1000. Common stock 500 Retained Earnings 350 Net income 2021 150 The company has 500 thousand shares outstanding at a par value of 1000€. The market value of the shares today is 7500€ MC Andersen, who has 10% of the shares is proposing to make a dividend payment in cash for 30 Million MIE Bettermore, the CEO, holding 1 % of the shares is proposing to make a stock dividend with a value of 30 Million. You are the CFO of the company, so they are requesting you to prepare:

Answer rating: 100% (QA)

1 Answer In order to decide between the dividend payment in cash or stock dividend proposed by MC Andersen and Mrs Bettermore the CFO must first consider the financial situation of the company Pizza B... View the full answer