Investment, an exact science

Bibliographic data

Monograph

Identifikator:: 865521182

URN:: urn:nbn:de:zbw-retromon-48767

Document type:: Monograph

Author:: Lowenfeld, Henry

Title:: Investment, an exact science

Place of publication:: London

Publisher:: The Financial Review of Reviews

Year of publication:: 1906

Scope:: 1 Online-Ressource (X, 160 Seiten)

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

JAS. H. OLIPHANT & CO. Year Net Year Net 1926........$26,249,000 1923........$23,040,000 1925........ 25,222,000 1922........ 21,992,000 1894 . 23.778.000 1521... 9s. 16,253.000 ay icy 1 This record compares with an annual average of $9,518,000 from 1916 to 1920 and of $2,682,000 in the five years following 1911 when the dissolution of the tobacco trust put Reynolds on its own. This addition of $20,000,000-odd to earning power was accom- plished with re-investment of $110,583,000 surplus earnings in 15 years and less than $8,500,000 net outside capital retained in the business. Latter item is result from (1) sale of $2,475,000 common stock in 1912 and $10,000,000 in 1918, (2) sale of $20,- 000,000 7% preferred stock between 1914 and 1920 and redemption of it at $24,000,000 (120) in 1925, and (3) sale in 1919 and re- tirement in 1921 of $15,000,000 6% notes. Sole capital liability is now $100,000,000 common stock, $25 par value, consisting of $10,000,000 voting and $90,000,000 non-voting “B”’ stock. This includes a 25% stock dividend paid in February this vear. Expansion through profits has been liberally capitalized with stock dividend distributions. Thus $40,000,000 stock issued as dividend in 1920 cut surplus to $2,064,000 and $20,000,000 paid in 1922 left $4,915,000 surplus. Surplus as of December 31, 1926 was $50,204,000 of which $20,000,000 was subsequently distributed marking down surplus to about $30,000,000 which is still larger than at the end of any vear except 1925 and 1926. Beginning 1926, simultaneously with preferred stock retirement, the cash dividend on Reynolds common stock was increased from $3 (129% on $25 par) to $4 and again July 1 to a $5 rate. This is continued on the stock enlarged by recent 25% stock dividend just as a $3 dividend was maintained in 1922 despite a 33 1/3% inerease in stock. Protection for the $5 rate is found in the record of $8.20 a share earned in 1926, $7.44 in 1925, $6.99 in 1924, $6.76 in 1923 and $5.96 in 1922. These are computed on amounts of common out- standing each year and through 1925 were after deduction of pre- ferred stock dividends equal to about 44 cents a common share. As of December 31, 1926 current liabilities were $12,610,000 and current assets $128,526,000 including $16,931,000 cash. It is offie- ially stated taxes have been paid over the years or provided for in maximum amounts and pending tax adjustments should mean sub- stantial increase in company’s surplus account. reel ra

Access restriction

Copyright

Full text: Studies in securities

Monograph

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation