Reference no: EM132211715

Assignment - Need a case analysis on the below questions based on the attached excel sheet. Two pages a word document. See the below questions:

Nokia is considering issuing debt, issuing equity, eliminating its dividend, or decreasing cash to meet its funding needs. What are the benefits and costs of each alternative?

According to case Exhibit 10, Nokia estimates it may need EUR4.3 billion in external funds under the downside scenario. What is (are) the key driver(s) of Nokia's funding needs by 2013 in the downside scenario?

Adjust the pro formas assuming that Nokia, alternatively, does one of the following:

1. Issues EUR4.3 billion of long-term debt

2. Raises EUR4.3 billion in equity at a price of EUR4 per share

3. Eliminates its dividends

4. Decreases cash by EUR4.3 billion

To the extent that not all of the funding is needed or that more funding is required in any given year (i.e., the pro forma balance sheet does not balance), assume that cash is increased or decreased accordingly.

For scenarios a through d above, calculate the effect on Nokia's:

• Bond rating (based on case Exhibit 13)
• Earnings per share
• Cash balance and cash-to-sales ratio
• Interest tax shield

What would you do if you were CFO Timo Ihamuotila?

Attachment:- Assignment File.rar