Discuss the different capital structure theories and dividend policy theory that the case refers to.

Introduction

Your report should have an introductory paragraph (about 10% of your word count). The introduction should arouse the reader’s interest in the report and:

•Set the scene by stating the purpose of the report (Example: “This report will….”)

•Explain how you have interpreted the task by stating the most important issues facing ABC(Example: “The most important issues facing AB Care…”

•Outline how each of those issues will be tackled in the report and in what order (Example: “These issues will be addressed in this report by….”) You may also define or explain key terms if necessary (although, in this report, you may leave this to the main text). There are 8 marks available for the introduction. Main sections of the report The main sections of your report should be about 75% of your word count. Each section should have a heading specifying the contents of that section. Only one major topic area (or a linked series of smaller topics) should be in each section. Your sections should address as a minimum:

a. Confirm some of the numbers stated in the case.

b. Discuss whether the statement made by both Anne, the CFO, and Jeffrey, the CEO are correct or not and explain why.

c. Highlight and discuss the different capital structure theories and dividend policy theory that the case refers to. d. Calculations of the required rate of Recommend to the board Depending on your report structure, you may have more than one section for any of the above.

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