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Dividend paid to BP in U.S. Dollars?

a. The dividend paid to BP is $___. (Round to the nearest cent)

b. If Rosneft were to pay the same dividend to BP in July 2015, and the spot rate at that time was RUB75.04=USD1.00, what would BP receive in U.S. dollars?

The dividend BP would receive is $___. (Round to the nearest cent)

c. If the combination of Western sanctions against Russia and lower global oil prices truly sent the Russian economy into recession, and the spot rate was RUB75.04=USD1.00 in July 2015, what might BP's dividend be in July 2015? (Select from the menu)

BP's dividend could very well be zero in 2015 if the Russian economy (improved or worsened) in the first half of the year, and Rosneft's profitability was (destroyed or improved) from economic conditions, sanctions, and the (fall or rise) of the ruble.

Even if Rosneft did manage to achieve a (negative or positive) level of profit in 2015, given its sizeable debt payment obligation, it could choose to not pay a dividend in order to preserve cash flow for debt service.

Finally, at least in the early spring of 2015, there was a real possibility that the Russian government could institute capital controls that would (force or prevent) the payment of the dividend to a foreign stockholder like BP. Capital controls were a real possibility because of the (plummeting or skyrocketing) value of the ruble.

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  • Category:- Corporate Finance
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