Metropolitan State University Of DenverFIN 3850 1) You are the CFO of a firm that currently has a debt ratio that is above the industry average

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Metropolitan State University Of DenverFIN 3850

1) You are the CFO of a firm that currently has a debt ratio that is above the industry average. You are preparing for an internal management meeting in which the firm's Capital Structure policy is on the agenda. You are of the opinion that the firm should decrease its debt ratio. You would like the company to issue additional equity and use the funds to pay down some bank loans. Write up a memo that outlines your position on this matter, and contains your recommendation backed by appropriate justification.

2). You are the CFO of a relatively young public company that was established 5 years ago. Your firm has not been paying any dividends during this time and instead been using all internally generated funds for reinvestment and growth. You are preparing for a meeting with the CEO and the Board of Directors in which the main item on the agenda is about whether the company should now start paying dividends or whether it should continue to reinvest the funds. You have a strong preference for the latter. That is to say, you do not believe that the company should start paying dividends just yet. Write up a memo that outlines your position on this matter and contains your recommendation backed by appropriate justification?