Question: Hello, I really need help to solve this questions for my project, we are talking about FORD company. Part 4 Dividend Policy 4A Current payouts

Hello, I really need help to solve this questions for my project, we are talking about FORD company.

Part 4 Dividend Policy 4A Current payouts to shareholders 3. Framework: a. Describe the amount and timing of dividends over the last five years. b. Explain how the dividends relate to earnings. What is the payout ratio? c. Is it necessary for the firm to pay dividends? I.e., how else has the firm conveyed information to the market? d. Do the marginal shareholders like dividends? e. What is the firms growth rate? Does the firm need internal funds for it future financing needs? How valuable is flexibility? f. Are there any bond covenants which restrict dividend payouts? g. How does the firms dividend payout compare to other firms in the industry

4 B Analyzing dividends

3. Framework: a. Affordability: i. What is the firms FCFE over the past five years? ii. What is the current cash and cash equivalents balance? b. Management Trust: i. What has been the firms return on assets (ROA) over the last five years? ii. Are there any reasons to believe the firms investments may change over the near future? c. Valuation: i. Calculate firms current value using FCFE and FCFF. ii. Estimate value using your recommended dividend policy

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