The Dividend Policy and Working Management of the Carnival Corporation & Plc - Assignment Example

Carnival Corporation & plc Financial Analysis and Risks Carnival Corporation & plc is a global cruise company and one of the largest travel and leisure companies in the world. It figures in both S&P 500 and FTSE100 companies. Its operations are spread all over North America, South America, Europe, and Australia. The company is listed in both New York Stock Exchange and London Stock Exchange as CCL. It is headquartered in Miami, Florida. In this paper, we analyse the dividend policy of the company and working management of the firm. The three questions taken up are: the dividend decision of the firm in light of its gearing, the dividend policy of the company and the working capital management. The Dividend Decision and Gearing Considerable research has been conducted on the influence of gearing of a firm on the dividend decision making of the firm. The two most significant theories dealing with this subject, as explained by Brealey and Myers, are that of Miller and Modigliani (MM), and the traditionalist view. According to the theory proposed by MM, the capital structure of the firm has no relevance to determining the value of the firm. So, they opine that there is no difference in the value of stock between geared and ungeared firms. Gearing does not affect the value of a firm, whether positively or negatively. The payment of dividend also is not necessarily required to be done on a regular basis, since it does not have any effect on the value of the share price. MM have proved that capital structure can be irrelevant even when debt is risky. (Brealey and Myers 469) Thus, MM propose that financial leverage or gearing does not affect shareholders wealth. And secondly, that the rate of return on shares increases as the firm's debt-equity ratio increases (pp. 473). But, this increase is exactly offset by increased risk and hence, the required rate of return, which nullifies the increase in returns. A "traditionalist" view has emerged in response to MM's proposals regarding geared equity. The traditionalists believe that personal borrowing is more expensive, risky and inconvenient to investors, so they are willing to pay a premium for shares in moderately geared firms. Consequently, they believe that firms should borrow to "realise" this premium. (Brealey and Myers 782) According to this view, up to a certain point of gearing, the Weighted Average Cost of Capital (WACC) decreases, and after this point WACC increases. The point where WACC is minimum is the optimal point of gearing, where shareholders' wealth is maximised or price per share is highest. (McLaney 231) MM rejected this view and opined that WACC is impervious to level of gearing. Wacc and the value of a firm only depend on (1) the cash flows generated by the investments of the firm, and (2) their business risk. (pp 234) They see a world without taxes or bankruptcy costs. McLaney observed that a large proportion of firms do go for some level of capital gearing, while very high levels of gearing are very rare. Thus, managers do believe that gearing lowers WACC, but not at very high gearing levels. Empirical evidence shows that "firms with safe, tangible assets and plenty of taxable income have higher debt to equity ratios than an unprofitable business with intangible assets." (Warner 1976, and Altman 1984 qtd. in Soderlund and Ostermark) The pecking orders theory by Myers (1987) gives a conflicting view. It explains that some profitable firms borrow less as they have less requirement of outside money. Kjellman and Hansen (1993) have found that Finnish financial managers seek to maintain a constant debt to equity ratio. (qtd. in Soderlund and Ostermark) Soderlund and Ostermark have found that there are less dividend payouts when interest payments are high, since funds are channeled more towards creditors. There is a tradeoff between dividends and investments also. A tradeoff is also seen between dividends and net income. "When maximising net income, the model minimises dividends and prefers investments." (Soderlund and Ostermark) Maximal dividends were found to be sensitive to the discount factor. MM's view regarding dividends was that the value of a share in a firm is unaffected by the pattern of dividends expected from it. Shareholders can create dividends by selling their part of the shares. So, the timing of dividend does not matter to the shareholder. But the traditionalists believe that dividends are the most important determinant of share values, and 1 in cash is worth more than 1 in investments. The payment of dividends reduces the discount rate and enhances the share price over time. Financial managers do seem to believe in paying stable levels of dividends. This might be because dividends are more tax efficient than capital gains, especially for institutional investors in UK. The gearing position of Carnival Corporation & plc is as shown on Table 1, where long term debt to equity ration for 2006 was 33.74 and total debt to equity was 43.32. The company is low geared and is seen to be in a good debt finance position. The company was able to pay a dividend of $0.80 in 2005, which is mostly financed by the company's earnings, which stood at $2.70 EPS in 2005. The dividends for the year 2006 are $1.025 per share. This is a substantial increase. This again reflects the policy of the company to distribute earnings as dividends, after retaining some earnings. The dividends of the company has increased from $0.44 in 2003 to $0.525 in 2004, then to $0.80 in 2005, and $1.025 in 2006. The dividends have steadily increased. This has kept pace with earnings, as EPS grows from $1.66 in 2003, to $2.31 in 2004, and $2.80 in 2005. An assessment of liabilities shows that liabilities decreased from $11,876.00mn in 2004 to $11,460mn in 2005. The long-term debt also has been steadily decreasing since 2003, from $4,159.00mn in 2003 to $3,476.00mn in 2005. Shareholders equity has kept increasing, but very gradually since 2003. These figures show that Carnival Corporation is moderately geared and prescribes to the traditionalist view in terms of gearing of the company and the dividends paid every year keeping pace with the return from investments. The company increased the annual rate of dividend per share from $0.50 to $1.00 per share in 2005. (Annual Report 2005) It has maintained this rate in 2006. The company also repurchased 8 million shares at a cost of $386 million in 2005 through 2006. Carnival has also committed to $8 billion in investments in new ships and growth. There is an estimate of 5-13% capacity growth in Europe. (Annual Report 2005) Carnival is maintaining a moderate balance of debt and equity, and also making investments. The firm is seeking to reduce its debt while putting more earnings towards investments and payment of dividends. Here we see that the MM approach is not followed. A stable rate of dividend and debt-equity ratio is being maintained over the years, as also was evidenced by Kjellman and Hansen in 1993 among Finnish managers. In the study by Soderlund and Ostermark, it was supported that when interest payments are less then there is an increase in dividends. In the case of Carnival, interest payments are kept low and the retained earnings are distributed among stable increasing dividends and investments. Dividend Policy and Dividend Announcement Reaction Carnival Corporation & plc has maintained a target dividend payout ration. They usually paid at $0.50 till 2004. In 2005, the dividend payout was increased to a rate of $1.00. It has been maintained in 2006 as well. There was an increase of 10% in the last quarter dividend in 2006, which was increased to $0.275 per share from a constant $0.25 per share over the former three-quarters. The company also announced an investment of $500 mn (Sharecast News) at the same time on new ships, and announced an increase in earnings as well. There is generally a tendency towards a target payout ratio, and dividend stabilisation among the managers of the company. The increased earnings are passed on to shareholders and new investments. The company sends a message of good health and good future prospects at the same time. Literature Review In the mid-1950s, Lintner carried out a study among corporate managers about their dividend policy preferences. He found that among managers, an existing dividend rate is the benchmark. He said that managers have longrun target payout ratios. They focus more on dividend changes. Dividend changes follow from shifts in longrun sustained earnings, where managers tend to "smooth" dividends. Managers are averse to making dividend changes that may have to be reversed. Thus, dividends are increased slowly towards a target payout ratio. According to Lintner, dividends are dependent, in combination, on current and past earnings. (Brealey and Myers 437-8) A study by Fama and Babiak has confirmed these findings. We find the Lintner's theory to be true in case of Carnival Corporation. In this case, the company has a target payout rate, which is formulated keeping current earnings and past dividends in mind. An increase in earnings is passed to the shareholders over a period of two years, 2005 and 2006. But dividend changes are not sudden. They are smoothed over the whole year, with small changes in any quarter, as and when warranted. Dividend increases are small, which show a trend towards dividend smoothing and aversion to dividend reversal. The company pays a target dividend at $0.50 per share till 2004, when it increased the payout to $1.00 per share, which has been maintained in 2006 with slight changes. The dividend payment is seen to be a constant proportion of EPS over the years. As EPS has increased, dividend per share has also increased proportionally. There are many other theories explaining dividend policies. Among those are the Dividend Irrelevance and Tax Clientele approaches. Miller and Modigliani proposed the Dividend Irrelevance theory in 1961. They proposed that "given a firm's investment program, the dividend policy of the firm is irrelevant to the firm value." (Bhattacharyya) But this does not explain why companies and shareholders are interested in dividends. They explained this tendency with the help of taxes. In the presence of taxation, investors prefer certain forms of dividends. Miller and Scholes (1978) have studied the investors' attempt to shield their dividend income from taxation. Here we find that investors in Carnival Corporation have been offered sock repurchase as well in 2005, and up to 8 million shares were repurchased. Some investors preferred their dividend income in the form of capital gains. This may be due to savings from taxes in their respective areas. The share repurchase may also be a way for the company to hand over excess cash to investors rather than frittering it away. (Brealey and Myers, pp.437) There are other models, which explain dividend policies such as, the informational asymmetry and signalling models. Bhattacharrya in his model of asymmetric information has shown that when managers have certain information that investors don't have, then managers pass the information to investors by means of dividends. So, a higher dividend would mean good news and vice versa. Heinkel also studies this signalling mechanism. He said that a firm with less productivity would invest to its first best level and declare no dividend, while a firm past its first best level would declare a dividend and invest less than its first best level. (Bhattacharyya) In this way, dividends signal future cash flow to the capital market and investors. Easterbrook (1984) and Jensen (1986) founded the free cash flow hypothesis to explain dividends. They said that a dividend reduces the free cash flow to a manager and reduces the scope of overinvestment. There is still a lot of confusion among the dividend theorists. The role of dividends in predicting future performance of a firm is not completely clear, and is a contentious issue in finance. Carnival Corporation, at P/E of 19.0, PEG at 0.9, and dividend yield at 2.16% at present, and a dividend 5-year growth of 13.75%, with EPS 5-year growth at 11.03% and Dividend yield at 1.28 over five years (Table 1), shows moderate path to dividend decision compared to other firms in the travel and leisure industry. The industry Dividend yield stands at 4.47, P/E at 30.62, PEG at 2.61 (Table 2). So, among the travel and leisure industry, Carnival is a mature profitable firm, which is past its first best level, and is performing at a steady pace on all fronts. The managers are following a stable target dividend payout policy with occasional stock repurchases. Considering the signalling effect of dividends announced by Carnival, we find that the company is signalling good health and growth at the same time in their dividend declarations. On 18 Oct 2006, Carnival announced its fourth quarter dividend and that at a 10% increase (Sharecast News). They announced a dividend of $0.275 per share. In the previous three-quarters, Carnival paid a dividend of $0.25 per share each quarter. It was seen that the value of Carnival's share in the market had been rising steadily for three months before Oct 18, and went on increasing even after that, though not so steadily. (Chart1) The market over the last six months has been very favorably reacting to Carnival Corporation & plc. The market did not react immediately following the pronouncement, perhaps having anticipated the increase already as can be seen in the steady rise in stock price from mid September onwards. (Chart 1) The signal it sent was to reassert good earnings and future prospects to the investors. Overall, the travel and leisure shares have seen a steep climb over the last six months. (Chart 2) This seems to be a part of the boom that is anticipated and being felt at present in this industry. Carnival being one of the biggest players, it is expected that it will take away a big chunk if profits and grow well for the next few years. The expansion programs being undertaken by the company are a testament to this. The literature abounds in the dividend announcement effect on the market. Researchers have studied changes in dividends on share prices from a variety of different angles. (Gunasekarage & Power) Three main arguments are offered regarding the market response to dividend announcements. First, dividends signal the managers' assessment of future profitability or cash flows of firms to outside investors. This was also MM's argument. Secondly, managers might disclose information about their investment financing policy through their dividend decisions. A high dividend payout policy shows an intention of equity/debt financing, and a low dividend that of financing through retained earnings. A balance of the two seems to be true in case of Carnival Corporation. Lang and Litzenberger (1989) have found that the "average return on the announcement day of changes in dividends is significantly higher for overinvesting firms than for their value-maximising counterparts." (Gunasekarage & Power) This indicates that investors in the overinvesting firms are pleased to receive free cash flows rather than to permit them to be invested in marginal projects. The evidence shows that Carnival is not an over investing firm. The reaction in the market after dividend was announced was neither jubilant nor tepid. Perhaps, the investors believe that there is a scope for more investment. The company also knows this fact, as it followed up next day with an announcement of investing in several new ships and expansion program. The third argument is offered by the dividend clientele hypothesis, which shows the market response to be related to the dividend preferences of the marginal firm. Ratio Analysis The valuation ratios indicate that the company is heavily overvalued. The P/E ratio is 18.01, price to cash flow ratio is 13.03, price to sales is 3.84 and price to book is 2.28. However, this is in keeping with the industry norm as such. As is shown in Table 3, the P/E for the industry is 30.62, while price to revenue is 2.23 and price to book is 8.61. In spite of this, we can say that the company is overvalued in the market. This may be due to its future prospects, which, investors believe, may be brighter. The per share ratios for 2005 were good. The dividend per share was at 0.80 which increased to 1.10 in Nov 15, 2006. The Book value per share showed a healthy 20.17, and EPS fully diluted was 2.70, which again was good. The Revenue per share was 13.00. The company retained a part of its earnings to invest in new opportunities. Carnival is operating at comfortable margins. Operating Margin is 23.80 and Net Profit Margin is 20.36. The company, its revenue, dividend per share and EPS has seen growth over a period 5 years at 18.51, 24.02, 13.75 and 11.03 respectively. There is growth on all these measures, which shows a healthy growth trend. The company is not as financially strong as it seems. The Quick ratio is 0.31 and Current Ratio is 0.43. The optimum ratio would have been at least 1.0 and 2.0 respectively. These ratios show that the liquidity position of the company is very weak and it is technically insolvent. But the debt to equity ratio is low at 33.74 and 43.32, for LT debt to equity and total debt to equity respectively. This is a healthier sign as the company is low-geared. So, there is no high risk from gearing facing the company. The ROE is good at 13.34, and ROA at 8.82 and ROCE at 10.29 show a good level of returns for the company. As to efficiency measures, the Asset turnover is not very good at 0.39. But the inventory turnover is very good at 25.38. So, while the assets are not being used efficiently, the inventory of the company is being used very efficiently. Overall, aside from the liquidity position and asset turnover, the company seems to be on a good footing on all other ratios. Hence, we can say that the company is operating profitably, and the future prospects can be expected to be good for the company. The working capital is being managed efficiently. Conclusion Carnival Corporation is one of the biggest travel and leisure companies in the world. It pays cash dividends regularly and also has stock repurchase options available. It is moderately geared and maintains a balance between equity and debt payments. In this sense, it leans more towards the traditionalist theories of dividend decision making. The fundamentals of the company are good and the company is being profitably managed. The growth prospects of the company are also good. The company places a mix of debt and retained earnings on new investments. The dividends are mostly paid from earnings. Tables and Charts Table 1. Carnival Corporation Financial Ratios Valuation Ratios P/E 18.01 Price to Cash Flow Ratio 12.76 Price To Sales (TTM) 3.84 Price To Book 2.28 Per Share Ratios Dividend Per Share 0.80 Book Value Per Share 20.17 EPS Fully Diluted 2.70 Revenue Per Share 13.00 Profit Margins Operating Margin 23.80 Net Profit Margin 20.36 Growth (%) 5 Year Annual Growth 18.51 Revenue - 5 Year Growth 24.02 Dividends Per Share - 5 Year Growth 13.75 EPS - 5 Year Growth 11.03 Financial Strength Quick Ratio 0.31 Current Ratio 0.43 LT Debt to Equity 33.74 Total Debt to Equity 43.32 Return on Equity (ROE) Per Share 13.34 Return on Assets (ROA) 8.82 Return on Invested Capital (ROIC) 10.29 Efficiency Asset Turnover 0.39 Inventory Turnover 25.38 Data Provided by Thomson Financial Table 2. Carnival Corporation- Funadamentals Snapshot Revenue & Earnings Revenue (mil) (FYE) 11,087.00 Income From Continuing Operations (mil) (FYE) 2,257.00 Income From Total Operations (mil) (FYE) 2,257.00 Diluted EPS From Continuing Operations (FYE) 2.70 Diluted EPS From Total Operations (FYE) 2.70 Dividends Ex-Dividend Date Nov 15 06 Dividend Rate 1.10 Yield 2.16% Yield - 5 Year Average 1.28 Ratios Price To Revenue 3.92 Price To Cash Flow 13.03 Price to Book 2.32 Debt To Equity 43.32 Current Ratio 0.43 Growth Rates 5-Year Annual Dividend Growth Rate 13.75 5-Year Annual Revenue Growth Rate 24.02 Data Provided by Thomson Financial Chart 1. Carnival Corporation & Plc Index: FTSE 100 Sector: Travel & Leisure Market Cap: 5,754m Currency: GBP Source: Digital Look. Data for 6 Months. Chart 2. Travel and Leisure Industry Share Price Movement for 6 Months Source: Digital Look. Table 3. Travel and Leisure Industry Income & Efficiency Latest F'cast Div Yield 4.47 2.85 Div Cover 3.36 n/a Op Mrgn 2.58 n/a ROCE (136.42) Valuation Latest F'cast P/E 30.62 22.28 PEG 2.61 1.44 Pr/Revenue2.23 n/a Growth Latest F'cast Revenue 189.93 n/a PBT 90.87 n/a EPS 49.60 25.01 DPS 20.19 Source: Digital Look. Table 4. Carnival & plc Report Record 4th Quarter and Full Year Earnings (in millions, except per share amounts and other operating data) 2005 2004 2003(a) 2003 Revenues $ 11,087 $ 9,727 $ 7,596 $ 6,718 Net Income $ 2,257 $ 1,854 $ 1,210 $ 1,194 Earnings Per Share $ 2.70 $ 2.24 $ 1.49 $ 1.63 Dividends Per Share $ 0.80 $ 0.525 $ 0.44 $ 0.44 Total Assets(b) $28,432 $27,636 $24,491 $24,491 Other Operating Data Passengers Carried 6,848,386 6,306,168 5,422,456 5,037,553 Passenger Capacity(b)(c) 136,960 129,108 113,296 113,296 Number of Ships(b) 79 76 71 71 Number of Employees(b) 71,000 69,000 59,000 59,000 (a) Gives pro forma effect for the merger with P&O Princess as if the P&O Princess brands had been included in our consolidated results for all of 2003 and excludes $51 million of P&O Princess' merger related costs, or $0.06 earnings per share. This differs from the pro forma amounts shown in Note 3 to the consolidated financial statements as U.S. GAAP requires pro forma net income to be reduced by the amount of the merger related costs. (b) As of the end of the year. (c) Passenger capacity is calculated based on two passengers per cabin. Table 5. All the Companies in Travel and Leisure Industry Name P/E PEG Dividend Yield Operating Margin ROCE Standard Type 32Red 14.1 0.8 7.80% 13.19% 159.12% IFRS 365 Media Group 197.1 0.0 0.00% -0.71% 21.41% GAAP 888 Holdings 17.81.1 0.00% 18.23% 152.85% IFRS Advent Air 0.0 0.0 0.00% 6.42% 15.63% IFRS Air Partner 22.4 1.4 2.29% 3.28% 34.82% IFRS Amazing Holdings n/a 0.0 0.00% n/a -35.73% GAAP Arena Leisure 44.9 n/a 0.76% 16.51% 8.53% IFRS Arriva 16.8 n/a 2.63% 7.57% 17.21% IFRS Asia Capital n/a 0.0 0.00% n/a 16.05% GAAP Avionic Services n/a 0.0 0.00% -11.73% 404.10% GAAP Avis 35.6 n/a 0.00% 6.38% 7.20% IFRS Best of the Best n/a n/a n/a n/a n/a GAAP Betex n/a 0.0 0.00% -2.54% -193.30% GAAP BetInternet n/a 0.0 0.00% -2.70% -15,175.00% GAAP Betonsports 11.9 0.2 4.15% 1.20% 214.29% GAAP Birmingham City 11.2 n/a 0.00% 3.43% -21.78% GAAP British Airways 13.4 0.9 0.00% 8.68% 11.02% IFRS C.I. Traders 16.1 10.3 4.43% 8.40% 17.23% GAAP Caffe Nero 40.9 1.6 0.00% 9.06% 13.99% IFRS Capital Ideas 3.3 0.0 0.00% 65.75% 73.10% GAAP Carluccio's 29.2 0.9 0.00% 7.40% 26.45% GAAP Carnival Corporation 19.0 0.9 1.50% 23.74% 21.14% IFRS Celtic n/a 0.0 0.00% -3.37% -22.22% GAAP Chariot (UK) n/a 0.0 0.00% n/a -152.61% GAAP CHE Hotel 19.5 0.0 0.00% 5.81% 5.19% IFRS CheekyMoon Entertainment n/a n/a n/a n/a n/a GAAP Clipper Ventures 7.4 0.0 0.00% 12.27% 77.50% GAAP CNG Travel Group n/a 0.0 0.00% -36.39% 119.18% GAAP Compass Group 26.9 5.9 3.29% 4.70% 57.35% GAAP Corsie n/a n/a n/a n/a n/a GAAP Crucial Plan n/a 0.0 0.00% -6.83% -6.17% GAAP Cubus Lux n/a 0.0 0.00% -84.06% -179.78% GAAP Dart Group 18.5 0.2 1.24% 4.54% 23.20% GAAP Deep-Sea Leisure 11.4 n/a 0.00% 25.56% 12.32% GAAP Discover Leisure 36.7 0.0 0.00% 3.46% 40.45% GAAP DM 8.4 0.1 0.00% 23.16% 390.82% GAAP Domino's Pizza 39.7 1.7 1.12% 13.58% 92.18% GAAP easyJet 27.8 0.5 0.00% 7.27% 9.38% IFRS Enterprise Inns 18.9 1.1 2.09% 55.36% 33.09% GAAP European Business Jets n/a 0.0 0.00% -190.01% -215.18% GAAP First Choice 17.8 1.1 2.67% 4.26% -1,033.04% GAAP FirstGroup 18.8 2.7 2.43% 6.95% 26.12% IFRS FishWorks n/a 0.0 0.00% -3.63% -26.29% GAAP Food & Drink Group 8.6 n/a 0.40% 6.21% 461.86% GAAP Fuller Smith and Turner 28.1 4.3 1.24% 13.63% 6.67% IFRS Fun Technologies n/a 0.0 0.00% -33.59% 242.25% GAAP Fundamental-e Investments n/a 0.0 0.00% -16.76% -498.24% GAAP Gaming VC Holdings 3.1 0.0 46.78% 33.04% 178.47% IFRS GamingKing 35.3 2.6 0.00% 2.12% 5.21% IFRS Georgica 36.7 4.4 0.00% 9.70% 16.27% GAAP Global Brands n/a 0.0 0.00% -3.63% -3.82% IFRS Go-Ahead Group 20.3 n/a 2.33% 6.12% 31.39% IFRS Goals Soccer Centres 73.5 0.6 0.16% 32.93% 26.68% GAAP Gondola Holdings 20.6 0.0 1.69% 14.61% 32.65% IFRS GR Holdings 5.5 n/a 3.33% 23.79% 7.50% GAAP Greene King 19.7 1.0 1.83% 23.48% 12.02% IFRS Heavitree 65.9 n/a 0.78% 13.61% 20.54% GAAP Heavitree.A n/a n/a n/a n/a n/a GAAP Hogg Robinson n/a n/a n/a n/a n/a GAAP Holidaybreak 16.4 2.8 3.81% 11.26% 72.41% GAAP Honeycombe Leisure n/a 0.0 0.00% -27.36% -233.48% GAAP IFR Capital n/a n/a n/a n/a n/a GAAP Individual Restaurant n/a 0.0 0.00% -0.62% -2.31% GAAP Interactive Gaming Holdings n/a 0.0 0.00% -10.68% -172.80% GAAP InterContinental Hotels Group 49.5 1.1 1.24% 19.72% 12.13% IFRS Kingdom Hotel Investments n/a n/a n/a n/a n/a GAAP La Tasca 24.7 n/a 0.73% 10.85% 57.55% GAAP Ladbrokes 18.1 2.0 2.61% 2.16% 11.20% GAAP Lo-Q n/a 0.0 0.00% -3.87% -5.94% GAAP Luminar 17.3 1.2 2.00% 10.60% 7.25% IFRS Marston's 18.3 1.3 2.46% 25.58% 10.38% GAAP Maypole Group 68.8 0.0 0.00% 14.48% -21.56% GAAP Media Corporation 6.4 0.0 0.00% 19.33% 40.42% GAAP Millennium & Copthorne 29.3 1.5 1.23% 19.56% 9.05% GAAP Millwall Holdings n/a 0.0 0.00% -64.41% -42.36% GAAP Mitchells & Butlers 23.6 1.9 1.77% 18.90% 9.04% GAAP MyTravel Group 'A' Ord 24.7 0.5 0.00% 1.20% -29.88% GAAP National Express 14.3 1.4 2.91% 4.94% 29.26% IFRS New Media Lottery Services n/a 0.0 0.00% n/a -513.05% IFRS Newcastle United n/a 0.0 0.00% -7.44% -14.53% IFRS Newfound 63.0 6.6 0.00% n/a -1.48% GAAP Northern Racing 21.2 1.4 0.75% 17.32% 11.11% GAAP Paddy Power 29.2 n/a 1.30% 2.20% 33.26% IFRS Pantheon Leisure n/a n/a n/a n/a n/a GAAP PartyGaming 8.1 n/a 8.41% 34.00% -439.76% IFRS Peel Hotels 21.8 n/a 3.11% 16.31% 13.97% GAAP References Bhattacharyya, N. "Dividend Policy: A Review." Managerial Finance Volume 33 Number 1 2007 pp. 4-13. Brealey, R.A. & Myers, S.C. Principles of Corporate Finance. Tata McGrawHill. 2004 Carnival Corporation & plc. Annual Report 2005. "Carnival Corporation & plc. Fundamentals - Ratios." [Online] http://phx.corporate-ir.net/phoenix.zhtmlc=140690&p=irol-fundRatios "Carnival Corporation & plc. Fundamentals - snapshot." [Online] http://phx.corporate-ir.net/phoenix.zhtmlc=140690&p=irol-fundsnapshot "Carnival Corporation - CCL Snapshot." Sharecast News. www.sharecast.com Gunasekarage, A. & Power, D.M. "Anomalous Evidence in Dividend Announcement Effect." Managerial Finance Volume 32 Number 3 2006 pp. 209-226. McLaney, E.J. Business Finance for Decision Makers.Pitman Publishing. 1991. stermark, R. & Sderlund, K. "A Multiperiod Firm Model for Strategic Decision Support." Kybernetes Volume 28 Number 5 1999 pp. 538-556. Summary of Travel and Leisure Companies data. [Online]http://www.digitallook.com/companyresearch/50081/Travel_&_Leisure/company_research.html Travel and Leisure Industry data and 6-month Chart. [Online]http://www.digitallook.com/companyresearch/50081/Travel_&_Leisure/company_research.html Read More