INSRUCTIONS
Read case number 27 starting on page 329 in the text book. Use the lesson video to answer the following questions in your case analysis.
- How is EMI doing? What are your concerns? What does EMI have going for itself?
2. It seems like this dividend decision is a big deal. Do shareholders generally prefer firms that pay dividends ? Do you think EMI shareholders would pay more if EMI promised a 6p dividend?
3. Why should the dividend policy matter much at all? Why us this divided decision so important to EMI?
4. What should Stewart do?
No financial analysis needed for this case.
ANSWER
EMI Group PLC has found itself in a challenging position, especially with the emergence of digital music that can be stored and downloaded in MP3 format. As a result, the company is experiencing financial challenges due to declining revenues. The company’s digital sales growth is not fully compensating for the decline in physical sales, as other digital platforms, such as Apple iTunes, provide more effective platforms for storing and downloading music (xxx et al., 2018). My greatest concern is that the decrease in the company’s stock prices is a great risk to.. To access full answer, use the purchase button below.