The Chief Financial Officer (CFO) of the Company TELUS (TELUS) has just announced that Moody’s, a bond rating service, the company has downgraded the credit rating to one notch below investment grade. The CFO’s challenge is to determine which specific measures, if any, to recommend the company’s audit committee. First, this case facilitated a discussion about how to plan changes in the capital structure of a company influence earnings, share price and flexibility for implementation. Second, students learn how binding … Read more »

The Chief Financial Officer (CFO) of the Company TELUS (TELUS) has just announced that Moody’s, a bond rating service, the company has downgraded the credit rating to one notch below investment grade. The CFO’s challenge is to determine which specific measures, if any, to recommend the company’s audit committee. First, this case facilitated a discussion about how to plan changes in the capital structure of a company influence earnings, share price and flexibility for implementation. Second, students about how ratings set and learn how a company bond rating affects the yield. Load by confronting to the situation of Telus during the difficult market conditions in 2002, students learn how to manage relationships with investors, while in the midst of change.
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from
Ken marks
Paul M. Bishop,
Larry Wynant
Source: Ivey Publishing
21 pages.
Release Date: 20, March 2012. Prod #: 906N20-PDF-ENG
TELUS: Capital Structure Management HBR case solution

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