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Evaluation of the companys capital structure policy

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Reference no: EM132307218

COMPANY NAME - SYMBOL GICS INDUSTRY GROUP

Bluescope Steel Limited BSL Materials

Required

a) Cost of capital and capital structure Determine the cost of capital for each source of finance as well as the weighted average cost of capital for 2018. What does the WACC suggest for the company? Provide an evaluation of the company's capital structure policy and recommend an appropriate capital structure policy for the company. Do you find the capital structure risky for the company? Justify your answer.

b) Dividend policy Analyse the company's dividend practices and the use of internal funds over the 2009-2018 period. Describe the dividend pattern and policy followed.

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The solution involves determination of the cost of capital for each source of finance as well as the weighted average cost of capital for 2018 for Bluescope Steel Limited. Further an evaluation of the company’s capital structure policy and recommend on the same is provided. Analysis of the Dividend policy and the use of internal funds over the 2009-2018 period is done using the dividend pattern and policy followed.

Reference no: EM132307218

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