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