The CFO of telus corporation (telus) has only been advised that moody's, a bond rating service, has downgraded the company's credit rating to a notch below investment grade. The cfo's challenge would be to determine what particular activities, if any, to advocate to the audit committee of the company. In the first place, this case provides a conversation on how the alterations in the capital structure affect a firm's income, stock price and flexibility to execute plan.
Second, pupils learn about bond ratings are set and how a firm's bond rating affects its bond yield. Last, by focusing on the scenario confronted by telus during challenging market conditions in 2002, pupils find out the best way to manage relationships with investors while in the middle of change.
TELUS Capital Structure Management case study solution
PUBLICATION DATE: March 20, 2012 PRODUCT #: 906N20-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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