Telus Corporation : Capital Structure Management

Telstra is Australia’s largest and most efficient telecommunications company, which provides one of the best-known brands in the country. They offer a full range of services and compete in all areas of telecommunications both domestically and internationally. Telstra’s vision is to enhance its position as the leading full service telecommunications and information Service Company in Australia as well as to expand its presence internationally. (Telstra Website, 2008)

Because we have not been notified of any substantial changes within the company’s financing agenda or asset acquisition goals, we find it safe to assume that Telus will continue to use the same financing weights in the near future. Another thing that we believe Telus should consider is avoiding the issuance of Preferred Stock in the future. Although this type of stock is less restricted, it can considerably affect the company’s overall cost of capital based on a higher after-tax cost and given that this type of stock is not tax

1.0 IntroductionTelstra Corporation is a telecommunications and information services company. It provides a range of services including fixed line services, Internet access, and business services. Telstra is the market leader in the telecommunication industry in Australia, with one of the most prominent brand names. However, its products and operating services face an increasing threat from competitors. An analysis with recommendations of Telstra marketing is necessary in order to improve its performance.

Capital One is a banking company that is focused on credit cards and consumer loans. The company also has some minor international operations in Canada and the UK, primarily in the credit card business. The company breaks down its business as follows. Credit cards are the major source of income, accounting for $10.4 billion in revenue, or 64% of the total revenue for the company. Consumer banking accounts for 31% of the revenue, commercial banking a further 10% of the revenue, and the company has negative revenue on "other" businesses. The credit card business is the most profitable, generating $2.277 billion in profit, or 70% of the company's total net income. Consumer banking accounted for 25% of total net income, while commercial banking accounted for 16% of total net income.

Since Telus uses both long-term bonds and short-term notes, the current required rates are the starting point, but they must be adjusted for two factors:

This report will be based on the Target Corporation, and will consist of two sections: 1) long-term financing policy and capital structure, and 2) an acquisition analysis. The first section will include: Target's most recent long-term financing decision; an analysis of the economic, business, and competitive background in which the financing occurred; Target's book value and market value; possible changes that would occur to Target's finance policy and capital structure if it was forced to consider re-organization and bankruptcy strategies; and finally discuss Target's international investment and financing

After largely dominating the telecommunications market for a century, Telstra’s competition has recently become more widespread. In order to effectively adapt to this changing market, Telstra has employed the use of market segmentation in an attempt to

The telecommunications coverage in rural and regional areas in Australia has monopolistic characteristics. Telstra has a competitive advantage over Optus with 99.3% coverage of the population compared to Optus with a 98.5%, this is equivalent to an estimated 192,000 more potential customers. Although Telstra has this competitive advantage they claim that the revenue received from their rural base stations does not cover the cost of development and maintenance.3.

Rogers Cable is the leader in Canada’s cable television market, with a over 2.3 million cable television subscribers and 500000 internet subscribers. In 1993 the Canadian government relaxed the norms of telecommunications industry followed by an application in 1999, allowing local carriers to change the content of the information passing through their networks. This led to increased competition in the market and the customers enjoyed a lot of choice. As such Rogers Cable focused completely on increasing its subscriber base and

It seems like credit rating firms such as Moody’s has become more aggressive since the 2008 economic downturn. I personally, wish these rating firms would’ve been more aggressive before the world economy took such a beating. I agree with Mr. Emanuel, these firms seem to feel more inclined to give municipal-bonds a lower rating. Either Moody’s was doing a bad job before on their ratings, or they have begun to treat these municipal-bonds fairly.

I. BACKGROUND: CelluComm and GMCT and the Industry AT&T’s Bell Laboratories cellular telephone networking innovation had enabled several cellular network operators to get licenses from the FCC to operate in separate license territories right about the same time AT&T was broken up in early 1980s. These operators were either companies like Cellular Communication Services, Inc. (CelluComm) or small entrepreneurs who had won license territories through the lottery system. CelluComm’s  president  and  founder  Ric  Jenkins  was  known  for  being  an  aggressive businessman  who  had  extended  it  to  a  200  million  dollar  enterprise  ranking  in  the  top  20  of  the industry.  Key  to

In the competitive environment, Comcast does not get threatened with new entries into the market very often as the cable and satellite industry is very costly to enter. Comcast also does not have much supplier power so that does not factor very heavily into their strategy, especially now with the increase in streaming and satellite services for television. However, the other three forces in the Porter’s five forces model are all very active in Comcast’s business model (10K Comcast, 2017). The consumers subscribing to Comcast and the businesses advertising with Comcast do possess a certain degree of buyer power, this forces Comcast to keep their prices competitive and relevant to current demands in the market (10K Comcast, 2017). The threat of substitution in this industry is growing, this can be attributed to poor customer service, higher fees and the growth of online streaming services such as Netflix and Hulu that are taking customers away from traditional cable and satellite companies (Levy,2016).

Jules Kroll is planning to enter into the ratings industry. To determine whether it is a good idea and a good time for him to enter into the new business, we project the 5-year NPV for KBRA and apply SWOT analysis to KBRA. The 5-year projected NPV is $341.1 million, a positive number. It is a good time and a good idea for KBRA to enter the business. However, through our SWOT analysis, it would be difficult for KBRA to become competitive in a short time. Thus we suggest it add a credit rating division into the company to make attempts to it but not start up a

The purpose of the report is to understand the capital structure of the chosen company on the basis of the financial statements of the company which includes the income statement, balance sheet and the cash flow statement of the company and do the capital analysis of the company as well to find out the advantages and disadvantages in working capital of the company and suggest company logical and useful ways for growing their economy.

Glencore Plc also have suffered a fresh blown, when the investors service named Moody’s downgraded the actual outlook for the commodity giants credit rating due to the concerns over continued weakness in the commodity’s prices, just after the days when the company has outlined their plan on how to slash its heavy debt load.