Company A has been performing reasonably well over the last several years.

Table 7.27 shows an abbreviated set of its financial data for the years 2009–2014.

a. Analyze the company’s dividend–payout ratio to common stockholders, and comment on the suitability of this dividend policy.

b. Discuss the debt financing policy of this company over the years. In your opinion, does the long-term debt of the company represent too high (aggressive) or too low (conservative) a percentage in its capital structure? Why?

c. Do you regard the percentage of common stock equity in the company’s capital structure as adequate, and why?

d. For 2004, the company needs an influx of $30 million to finance business expansion. Which financing option should the company pursue? Why?