Evaluate the companys financing strategy, Finance Basics

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For any company that is quoted on the London Stock Market, you are required to write a report to existing shareholders on any TWO of the following issues. Each answer carries equal marks

a)  Critically evaluate the company's financing strategy, with particular reference to its gearing.

b) Evaluate the company's strategy on international activity and finance. Include in your answer how the company currently treats international issues, and make suitable recommendations as to the validity of its approach.

c) Discuss the dividend strategy adopted by your chosen company and critically evaluate this in the light of theories on dividend policy.

d) Evaluate whether in the light of the current financial and economic environment your chosen company is more concerned with shareholder value than any other type of stakeholder.

e) Consider whether your chosen company would make a good takeover target. Justify any recommendations you make.

f) Evaluate the liquidity and solvency of your chosen company, discussing as appropriate any trends identified over the last few years. Additionally this might include consideration of short term cash flows.


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