1. Choose a company from the below list of sector/industry in the stock market. Make sure the company is listed under Large- cap (a stock with a market cap between $10 billion and $200 billion). Make sure to pick a Publicly Listed Company only as they need to declare their financial statements ( 2 Marks)

1. Financials
2. Utilities
3. Consumer Discretionary
4. Consumer Staples
5. Energy
6. Healthcare
7. Industrials
8. Technology
9. Telecom
10. Materials
11. Real Estate

2. Lets assume this company is expecting to earn a profit of $30 million and you are required to make following decisions.. Download the Annual Financial Statement of 2020 and research the Dividend Policy(If the company pays regular dividends historically) before answering.. Comment on the existing dividend policy. (3 Marks)

1. The company uses the money to pay off a one-time special dividend. Keeping in mind the Modigliani and Miller approach how will this decision affect the stock price and the shareholder value. (Use calculations of Market Value and Balance Sheet of 2020 to justify the rationale) 5 Marks

2. The company uses the money to pay off the debt. How would that affect the value of company? (Use calculations of Market Value and Balance Sheet of 2020 to justify the rationale) 5 marks

3. If the company uses this money to repurchase shares how would that affect the P/E, ROA and ROE? How will the value of company value be affected by share-repurchase? (Use calculations of Market Value and Balance Sheet of 2020 to justify the rationale) 10 Marks
4. If the company decides to make a permanent change in dividend policy based on the profits would that be a good idea? 5 Marks
5. Based on the above analysis what are your final comments about the existing dividend policy of the Company. 5 Marks

Taking a TD bank 2020 financial statement