Lester Electronics Financing Alternative Benchmarking: Maximizing Shareholder Wealth

Lester Electronics Financing Alternative Benchmarking: Maximizing Shareholder Wealth

  • Submitted By: habib1
  • Date Submitted: 02/18/2009 3:06 PM
  • Category: Business
  • Words: 5277
  • Page: 22
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Lester Electronics Financing Alternative Benchmarking

MBA 540- Maximizing Shareholder Wealth
Tefera Beyene
Date: 02/04/2009

Lester Electronics is a consumer and industrial electronic parts master distributor. In 1978, it enters into an exclusive distribution contract with a small Korean company that manufactures capacitors, has a result of this contract; LEI grew rapidly to a $500 million a year. It also add an additional component to its product line which allow Lester to make inroads with two large domestic manufacturers that uses capacitors in both consumer and industrial use, also to small and medium sized original equipment manufacturers (OEM’s), repair facilities and small local distributors throughout America and Europe.
In this paper we will be discussing eight companies; these companies are Ford Motor Company and Microsoft, NTL and Telewest, K-mart and Sears, ITT Sheraton and Nokia. We have chosen important concepts such as dividend policy, wealth maximization, financial planning, short term and long debt, common and preferred stocks, retained earnings, bonds and capital structuring. The other equally important factor to this scenario will be the relationship of all these concepts to the scenario with Lester Electronics and Shang-wa Electronics as well as how they mirrored each other in terms of issues and opportunities.
Benchmarking Companies selected by Team C:
Ford Motor Company and Microsoft (Kashif Ansari)
NTL and Telewest (Habib Manzoor)
K-mart and Sears (Omololu Oduwa)
ITT Sheraton and Nokia (Odwongo Timothy)
Ford Motor Co. and Microsoft (Kashif Ansari)
Dividend Policy on Wealth Maximization
Dividends are payments made by a company to its shareholders. When a company makes a profit, it can either re-invest that profit as retained earnings or pay out a portion of that profit to its shareholders in the form of a dividend. Many companies retain a portion of earnings and pay out the remainder...

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