Managing Finance

Assignment

Answer Question 1 and Question 2 below using the company you selected for

Question 1 Capital Structure

Calculate the following measures for three years:

1. Capital structure (i.e., the percentage of debt and percentage of equity)

2. Cost of common equity and (if any) preferred equity

3. Sources of debt (i.e., bank loans and/or bonds)

4. Before-tax and after-tax cost of debt

5. Weighted average cost of capital marks)

Please read two case studies provided in Module 5 to assist you in answering Question 1.

Question 2 Dividend Policy

Provide answers to the following:

1. Report the dividend payments over the last three years

2. Calculate the dividend payout and dividend yield

3. Identify a dividend payout policy that the company follows

4. Comment whether the dividend payment of the company is providing a signal to the market

5. Evaluate the dividend policy of this company in terms of the industry practice