FIN 501 Laverage Capital Structure and Dividend Policy Hello!Below is my attached assignment. I included directions to make it easier. Please let me know i
FIN 501 Laverage Capital Structure and Dividend Policy Hello!Below is my attached assignment. I included directions to make it easier. Please let me know if more is needed. Thank you 🙂 Module 4 – SLP
LEVERAGE, CAPITAL STRUCTURE, AND DIVIDEND
POLICY
Review the 1) dividends for the past three years and
2) capital structure of the company you have been
researching for your SLP assignment. Then answer the
following questions in a Word document (except for the
Excel portion specifically noted). The paper should be 2
pages in length.
1. What has occurred with your selected companys dividend
payout, dividend yield, and dividend per share over the past
three years? Do you have any explanations for what has
occurred? Also, has this company had any stock splits or stock
repurchases in recent years?
2. How does your selected companys dividend payout, dividend
yield, and dividend per share compare with other companies in
its industry? Has the companys dividend strategy been similar
to other companies in its industry?
3. Use Excel to plot your selected companys earnings and
dividends over the past three years. Do you notice any
patterns? What dividend policies from the background readings
best match these patterns?
SLP Assignment Expectations
Answer the assignment questions directly.
Stay focused on the precise assignment questions. Do not go
off on tangents or devote a lot of space to summarizing general
background materials.
For computational problems, make sure to show your work and
explain your steps, in your own words.
For short answer/short essay questions, make sure to
reference your sources of information with both a bibliography
and in-text citations. See the Student Guide to Writing a HighQuality Academic Paper, including pages 11-14 on in-text
citations. Another resource is the Writing Style Guide, which
is found under My Resources in the TLC Portal.
My organization is Sturm, Ruger & Co (Ruger) is Americas biggest fire according to the
Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Ruger is a firearm made in
America and manufactured in the city/state of Southport, Connecticut. Alexander McCormick
Sturm and William B. Ruger the founders of Ruger started this business in 1949 and has publicly
traded since 1969. Ruger also builds many other weapons, knives, and develops pepper sprays
and scopes as well.
Module 4 – Background
LEVERAGE, CAPITAL STRUCTURE, AND DIVIDEND
POLICY
Required Reading
Capital Structure
Start by viewing the following video. It will introduce you to
capital structure and provide you with a basic understanding
of the main topics from this module:
Obi, P. (2014). Capital structure and financial leverage.
Purdue University. Retrieved
from: https://www.youtube.com/watch?v=xKBdJX-rHMg
Now go through the following tutorials from Investopedia
which include some videos. Start out with the tutorial on
degree of operating leverage, then scroll down to the
sections on earnings before interest and taxes and degree
of financial leverage:
Degree of operating leverage. (n.d.). Investopedia.
Retrieved
from: http://www.investopedia.com/terms/d/degreeofoperatinglever
age.asp
Now dive deeper into the concepts of capital structure with
the following two book chapters. Pay special attention to the
concepts of operating leverage, financial leverage, business
vs. financial risks, and the major theories of capital structure
choices. While the tutorials above will give you a broad
overview of the main topics, the following readings have
worked out problems and solutions that will be essential for
completing the Case Assignment:
Vishwanath, S. (2007). Chapter 19: Optimal capital
structure. Corporate finance: Theory and practice. SAGE
Publications India. Available in the Trident Online Library.
Brigham, E. & Houston, J. (n.d.). Chapter 13: Capital structure and
leverage. Fundamentals of Financial Management. Cengage Learning.
Finally, take a look at the following book chapter on dividend
policy. Take a close look at the concepts of regular dividend
policy and low-regular-and-extra dividend policy, as well as
stock splits and stock repurchases:
Clive, M. (2012). Chapter 15: Dividend policy. Financial
management for non-financial managers. Kogan Page.
Available in the Trident Online Library.
Optional Reading
Ahmad, A. (n.d.) Firm debt part 1: Calculating how much to
borrow. Coursera. Retrieved
from: https://www.coursera.org/learn/financedebt/lecture/0P8l0/firm-debt-part-1-calculating-how-much-to-borrow
Sexton, N. (2010). Introduction to dividend policy. LSBF
Global MBA. Retrieved
from: https://www.youtube.com/watch?v=wPVdxCJ2iCI
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Module 4
Required Material
Obi, P. (2014). Capital structure and financial leverage.
Purdue University. Retrieved
from: https://www.youtube.com/watch?v=xKBdJX-rHMg
Degree of operating leverage. (n.d.). Investopedia.
Retrieved
from http://www.investopedia.com/terms/d/degreeofoperatinglevera
ge.asp
Vishwanath, S. (2007). Chapter 19: Optimal capital
structure. Corporate finance: Theory and practice.SAGE
Publications India. Available in the Trident Online Library.
Brigham, E. & Houston, J. (n.d.). Chapter 13: Capital structure
and leverage. Fundamentals of Financial
Management. Cengage Learning.
Clive, M. (2012). Chapter 15: Dividend policy. Financial
management for non-financial managers. Kogan Page.
Available in the Trident Online Library.
Optional Material
Ahmad, A. (n.d.) Firm debt part 1: Calculating how much to
borrow. Coursera. Retrieved
from: https://www.coursera.org/learn/financedebt/lecture/0P8l0/firm-debt-part-1-calculating-how-much-to-borrow
Sexton, N. (2010). Introduction to dividend policy. LSBF
Global MBA. Retrieved
from: https://www.youtube.com/watch?v=wPVdxCJ2iCI
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