Question 1 Capital Structure

1) ($'000)
Total noncurrent liabilites
Current liabilities other than taxes and trade and payables
Total liabilities
Total asset
Percentage of debt
Percentage of equity

2)
Dividends (cps)
Dividend in $
Growth rate
Closing stock price
Cost of equity

3) Bank loans are the major source of debt for the company.

4) ($'000)
Interest expenses
Total debt
Before tax cost of debt
Tax rate
After tax cost of debt

5)
WACC

Question 2 Dividend Policy

1)
Dividend payment

2)
 Dividend in $
EPS in $
Dividend payout ratio
Dividend yield

3) Almost the company is maintaining constant payout ratio at about 65%.

4)
It indicates to the market that the company will maintain constant payout

5) Amazon is a major competitor and they do not pay dividends. Apple is ano
Corporation has dividend payout ratio of 62.4%. There is no industrial tre
pays higher dividend when compared to their peers.
 2014 2015 2016
$213,051 $171,198 $140,846
$49,135 $45,151 $50,985
$262,186 $216,349 $191,831
$859,841 $895,013 $992,381
30.49% 24.17% 19.33%
69.51% 75.83% 80.67%

2013 2014 2015 2016

$72 $84 $90 $100
0.72 0.84 0.9 1
16.67% 7.14% 11.11%
$18.30 $19.48 $24.10
22.02% 12.09% 15.72%

any.

2014 2015 2016

$8,845 $5,927 $3,857
$262,186 $216,349 $191,831
3.37% 2.74% 2.01%
30% 30% 30%
2.36% 1.92% 1.41%

2014 2015 2016

16.03% 9.63% 12.95%

2014 2015 2016

$77,183 $87,174 $93,205

2014 2015 2016

 0.84 0.9 1
1.2839 1.3791 1.5376
65.43% 65.26% 65.04%
4.59% 4.62% 4.15%

atio at about 65%.

ain constant payout ratio and the investor will generate a dividend income regularly.

vidends. Apple is another competitor who has a payout ratio of 24.8% . Stockland
re is no industrial trend that can be noticed by the payment of dividend. But the company