Calculate the dividend payout and dividend yield

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Managing Finance Assignment

The company selected is Telstra is Australia.

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

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.

Reference no: EM131431439

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len1431439

3/18/2017 12:32:40 AM

The company selected is Telstra is Australia. Please read two case studies provided in Module 5 to assist you in answering Question 1. Calculate the following measures for three years: Capital structure (i.e., the percentage of debt and percentage of equity) and Cost of common equity and (if any) preferred equity.

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