Session 23: More Debt Design First Steps on Dividends

In this class, we went through three basic approaches to debt design: an intuitive assessment of a company s products and pricing power, an analysis of expected cash flows on a single project and a macro economic regression of firm value, operating income against interest rates, GDP, inflation and exchange rates. Keeping in mind the objective of matching debt to assets, think about the typical investments that your firm makes and try to design the right debt for the project. If your firm has multiple busines br, br,