INSTRUCTIONS
After reading Case 27: EMI Group PLC, complete the following questions and post your responses.
- What are the central challenges facing EMI management team?
2. As CFO, how can Martin Stewart contribute to successfully managing EMI Group?
3. What do you learn from the sources-and-uses statement provided in the case Exhibit 7? What are the implications for EMI’s dividend policy?
4. What dividend policy would you recommend for EMI?
ANSWER
EMI management team faced several challenges, including digital disruption and declining physical sales. The rise of digital audio and the mp3 format allowed consumers to easily download and transfer music across the internet, making people less interested in CDs. Moreover, peer-to-peer file-sharing services like Napster disrupted the industry, leading to illegal downloads. Napster led to widespread music piracy, making it difficult for EMI to grapple with the challenge of adapting to … To access full answer, use the purchase button below.