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Corporate Valuation, Capital Structure and Dividend policy. - Essay Example
Finance & Accounting
Pages 8 (2008 words)
Capital Structure and Dividend Policy [Instructor Name] Capital Structure and Dividend Policy Introduction For the purpose of this report, two companies have been chosen - Limited Brands Inc. and News Corporation. Limited Brand Inc…
News Corporation is one of the top television groups in the world. Its business includes the best broadcasting company of United States called Fox Broadcasting Company. News Corporation’s cable network programming segment produces and issues licenses for programming to be broadcast on satellite. In addition to this News Corporation is one of the best motion picture producers. Fox Filmed Entertainment is considered to be the market leader in the movie production and distribution (News Corporation, 2013). In this report, some of the strategic decisions made by the companies in the year 2012 and 2011, have been considered and their impact on profitability. Capital structure has also been discussed in detail as well as dividend policy (1)Business Decisions News Corporation In June 2012, the board of director of the New Corporation decided to operate with two specializes segments. One of the segments will focus on news, publishing and education and the other segment will focus on the media and entertainment. The company believes that they will be able to achieve the expected rate of growth with the application of this change. Return on assets measures which the profit in terms of total assets used by the business (Berman & Joe, 2008), for the quarter ended March 2012 was only 1.49% because the total profit was only $937 million and the total assets were $62,745 million. ...
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