Capital Structures, Dividends, and International Considerations

For any business leader, the overall goal is to increase profits for his shareholders. Like other financial managers, the head of a company may use a variety of tools to achieve this goal. However, they most likely take advantage of other areas of finance also, such as capital structure, or the company's mix of debt and equity, and dividend structure, which is a way of distributing cash to shareholders. Finally, most financial managers at least consider international finance, which, as the name suggests, means entering foreign markets.

This resource provides instruction for users to:

• Define capital structure
• Describe, in theory, the optimal capital structure
• Recognize how financial leverage affects Earning Per Share (EPS)
• List two reasons why dividends matter Indicate when a dividend can be paid
• Name the factors affecting Dividend Policy
• List two common types of dividend policies
• Define stock splits and stock dividends
• Convert foreign currencies to home currency
• Describe three methods of international expansion
• Recall three sources of international risk Identify two techniques for managing international risk