The CFO of your company (BD-Becton Dickinson and Company) states that the composite cost of capital is saucer-shaped or U-shaped. Explain what this means.
Explain the trade-off between retaining internally generated funds and paying the cash dividends. Which of these does your company do? From what financial statement did you get this information? Explain the dividend policies of your company. Do you support from a financial perspective the policy? Why or why not?
What is the impact of flotation costs on the financing decision?