How would you describe your chosen companys dividend policy

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Assignment

1. Imagine you are a representative of management for Delta Airlines and you must make a capital budgeting decision. The decision is to implement a new computer network system to decrease the time between customer order and delivery. The cost will be 10% of last year's profits. You are charged with describing the important considerations in the decision-making process to upper management. In your response, be sure to include the following:

•A description of the important factors, in addition to quantitative factors, that were considered when making this capital budgeting decision.

•An explanation of how these factors are significant to the company.

•A summary of how you will determine the criteria to rank capital budgeting decisions and whether some criteria are more important than others.

•A calculation of the proposed return on investment based on criteria you select and justification for that ROI.

Develop a 200 - 250-word explanation supporting your recommendations.

Tip: For help with reading an annual report access this handy guide from Money Chimp (https://www.moneychimp.com/articles/financials/fundamentals.htm)

2. Revisit the company Delta Airlines. Using the annual report and other sources such as a 10k or 10q's, discuss the dividend policy of your company.

Answer the following questions as part of your response:

•How would you describe your chosen company's dividend policy?
•Why do you believe this company chose the dividend policy they have in place?
•Do you agree or disagree that they have selected the best dividend policy for the company?
•How might this dividend policy function in both perfect and imperfect capital markets?
•Calculate the dividend rate over the past 5 years. Define why you believe that it has or has not changed over the last 5 years.

Support your position with evidence from the text or external sources.

Your post should be 200-250 words in length.

Reference no: EM131346783

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