Need helps!!!!!!!

[buitri264]

Chào mọi người, em đang có 1 vấn đề hơi bị khó nhai. Mong các bros và sises giúp đỡ ạ !!

Assume you work for a boutique corporate advisory firm. One of your clients is seeking advice on a problem that he faces. Specifically your client is the CEO of Greenwich Corporation – a multi-billion dollar public company listed on the Australian Securities Exchange. Although the company has been profitable for many years, the shareholders have become increasingly disappointed with the relatively meagre dividend that the company has paid in recent times – for example, last year Greenwich Corporation reported a record net profit after tax of $2 billion (i.e. $2,000 million) but only paid a dividend of $10 million during the year.
Next week the company is scheduled to announce the results for the current year. The market is again expecting a net profit after tax of $2 billion for the current year and this has led some shareholders to argue that the company should also announce that it will pay a special dividend of $1 billion. The CEO is reluctant to consider paying such a large dividend because he wants to retain the cash in the company so that it can then be used to repay $1 billion in debt that is owing in one year’s time. On the other hand, the CEO is increasingly aware of the growing level of shareholder dissatisfaction and so would like to pay a $1 billion special dividend if he could.
The CEO needs to make an announcement about the dividend at the same time at he announces the results for the company – but should he pay the $1 billion as a dividend or should he keep the $1 billion to repay the debt later? This is his dilemma.
The company currently has 250 million ordinary shares on issue and the current Greenwich stock price is $80 per share. A few days after your meeting with the CEO you think you may have come up with an innovative solution – the company should announce that it will pay a $1 billion “Boomerang Dividend” to its shareholders. A “Boomerang Dividend” is just like a normal cash dividend except that it also involves a distribution of call options on unissued share in the company. This means that if the option is exercised, the company will issue new shares in exchange for the strike price. In particular, the idea is that Greenwich Corporation would pay its shareholders a Boomerang Dividend consisting of $400 cash and one option for each one hundred share currently held. For example, a shareholder who currently owns five hundred shares in the company would receive $2,000 cash plus five options. Each option would entitle the holder to buy $400 worth of new shares from the company in one
year’s time at a 5% discount to the prevailing Greenwich stock price at that time.
(a) Write a brief report to the CEO explaining your proposal. (Your report should include how the proposal
works, detail the option, what effects that may cause to the firm…).

[buitri264]

Có ai góp ý cho em 1 chút được không ạ? Please