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Telstra Capital Restructuring: Optimal Capital Structure and Strategies

   

Added on  2023-04-21

24 Pages1735 Words422 Views
Telstra
Corporation

Telstra
Telstra: Largest Australian
based telecommunication
company.
Founded in: 1975 (Telstra,
2018).
Key Business: Fixed Line,
CEO: Andy Penn
Headquarters: Telstra
Corporate Centre,
Melbourne, Australia
Revenue: A$29 billion
Listed on: Australian Stock
Exchange
New Zealand Stock Exchange
Serving: Worldwide
Purpose: To connect a brilliant
future
EBITDA: $10.1 billion
Employees and
Subsidiaries:35000, 150

Capital Restructuring
Corporate Operation
Accumulation of Debt and Equity
(Susman, 2017).
Required when changes are
happening
Affects the profitability of the
business
Reasons to use: Dynamic market
conditions
Hostile take over bid
Bankruptcy

Why capital
Strcuture
To determine efficiency
Adds value to the firm
Risk taking capacity
How much capital is required (O'Keefe, 2017)
Ease in operating with the clients
Right blend is required to meet the competition


Forms of capital Restructuring
Joint ventures
Sell off or spin off
Equity carve out
Employee stock ownership
Master limited partnerships
Leveraged buyouts (Ross, Shakow, Graham & Gibson, 2017)
Acquisition or merger
Selling of the company

Telstra capital structure
Telstra's capital structure
2016 Weights 2017 Weights 2018 Weights
Debt 14647 48% 14808 50% 15316 50%
Equity 15907 52% 14560 50% 15014 50%
Total 30554 100% 29368 100% 30330 100%

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