This case examines the April 2007 decision of British music company EMI to suspend its annual dividend as the company struggled to respond to the effect of digital audio distribution on its core business. The EMI case is intended to serve as an introduction to corporate financial policy in managing the right side of the balance sheet. The case contrasts EMIs storied success with artists such as the Beatles, the Beach Boys, Pink Floyd, and Norah Jones with its recent inability to succeed in financial markets. In light of takeover threats and restructuring costs, EMIs CFO Martin Stewart must recommend EMIs dividend policy