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Submit written answers in BlackBoard Assignments – support your answer; use Excel for any quantitative responses. |
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1 |
In addition to a dividend and/or stock buyback decision, what other financial and non-financial concerns is the CFO facing? |
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2 |
What are the quantitative implications of different dividend payout levels on Rockboro’s capital structure and unused |
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debt capacity? Hint: use financial statement forecast spreadsheets of the income statement and balance sheet |
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3a |
What does the CFO need to consider regarding the dividend decision? |
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3b |
What does the CFO need to consider regarding the stock buyback decision? |
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4 |
What does the stock market appear to support regarding dividends? |
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5 |
What actions do you recommend the CFO take? |
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