Would you recommend a different dividend policy for the company? In particular, given the characteristics of the firm today, how would you recommend that they return that cash to stockholders (assuming that they have excess cash)?

Assignment Question

Requirements Carry out a further detailed analysis on one of the listed companies you selected for the first group assignment. Your report should include I. Capital Structure Choices What are the different kinds or types of financing that your company has used to raise funds? Where do they fall in the continuum between debt and equity?

How large, in qualitative or quantitative terms, are the advantages to the company from using debt? How large, in qualitative or quantitative terms, are the disadvantages to the company from using debt? From the qualitative trade off, do the firms look like they have too much or too little debt? II. Optimal Capital Structure Based upon the cost of capital approach, what is the optimal debt ratio for your firm? Does your company have too much or too little debt relative to the sector and the market? Recommend a different capital structure for your company.

Explore different types of of financing this firm can use, and in particular, long vs short term, different currencies, and special features. III. Dividend/Stock Buyback Policy How has the company returned cash to their owners? Has it paid dividends or bought back stock? How much cash have the has it accumulated over time? How does your company dividend policy compare to its peer group and to the rest of the market?

Would you recommend a different dividend policy for the company? In particular, given the characteristics of the firm today, how would you recommend that they return that cash to stockholders (assuming that they have excess cash)? In what form (dividend or buybacks?)

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