ATT Inc.pptVIP

 The American Telephone Telegraph Company Ⅰ. The introduction of the company The American Telephone Telegraph Company is a greatest US telecommunications company, which was funded in 1877, and had long monopolized the industry of telephone market. II. Corporate Governance Analysis III. Stockholder Analysis The ATT Inc. is owned by its common stockholders. Some of this common stock is held directly by individual investors, but the great proportion belongs to institutions such as mutual funds, pension funds, and insurance companies. III. Stockholder Analysis The ATT Inc. is owned by its common stockholders. Some of this common stock is held directly by individual investors, but the great proportion belongs to institutions such as mutual funds, pension funds, and insurance companies. Figure 2-1 Holdings of corporate equities, 2011. IV. Risk and Return The ATT Inc.’s stock market is within the swinging atmosphere, so it is unavoidable to suffer from the market. Figure 3-1 A comparison of the company and the market in there aspects V. Measuring Investment Returns Case VI. Capital Structure Choices Financial managers often think of the firm’s debt-equity decision as a trade-off between interest tax shields and the costs of financial distress.So we should see random differences in actual debt ratios among firms having the same target debt ratio. In 2011, the company’s debt ratio was 38%, 0.9% higher than in 2010. We can say that the company has enough to repay debts, and its assets were safe. VII. Optimal Capital Structure Ⅷ.Dividend Policy Companies can pay out cash to their shareholders in two ways. They can pay a dividend or they can buy back some of the outstanding shares. In the past 2011, the ATT Inc.has accumulated $1437 million. And combining with the following figure, there’s about $40 million that belongs to the stockholders, who were given $16 $40*39.68% million of cash. Instead of paying a dividend to its stockholders, the firm can use the cash to re