Assignment assesses students’ understanding of capital structure and dividend policy. Students are expected to identify and to explain relevant concepts and principles of debt/equity structure and payout policies, to apply relevant techniques in estimating cost of capital and determining optimal capital structure, and to explain a range of finance theories. Students are also expected to calculate dividend payments and to interpret dividend policies.

Proven ability to identify and to explain selected company’s policies, techniques, and processes on capital structure and dividend policy Ability to distinguish and to use different types of relevant information needed for decision making on capital structure and dividend policy. Include capital structure, cost of equity, cost of debt, cost of capital, discussion on the sources of debt, implication of tax rates on cost of capital, assumptions made for the calculations, and suggests about the optimal capital structure of the company Include dividend payments in dollars, dividend payout, dividend yield, dividend policy, and signalling, alternative theories of dividend payment, comparison with the industry or a peer, and also discusses the impact of dividend payment on valuation of the company. Consistently clear and substantiated calculations and analysis of the case company’s capital structure and dividend policy, which indicates exceptional understanding and application of theory and practices of capital structure and dividend policy.