Capital Structure Questionnaire

Part 1 Company Background

1

Name of Company

Year Established

Nature of Company
Regulatory
Non-Regulatory

Address of Company

Quotation Status of the Company?

Premium Board of NSE
Main Board of NSE
Alternative Securities Market of NSE
NASD
Non-quoted

6.

E-mail Address

7.

Website:

Tel:

Contact Person

10

Name of CEO

11

Name of CFO

12

Products and services

13

Industry Classification

14.

Board of Directors

15.

Nature of Ownership Control

Private Nigerians controlled ownership
Private Foreign controlled ownership
Government controlled ownership

16.

What is the financial year-end date of the company?

17.

What is the most recent annual report of the company?

18.

What is the highest level of education of CFO?

Below Bachelors Degree

HND/Bachelors Degree
MBA
Non-MBA Masters
Higher than Masters Degree
19.

What is the CFO Age?

Below 40
40-49
50-59
60 and above

20.

What is the CFO Gender?

Male
Female

21.

What is the CFO Nationality/

Nigerian
Anglophone African Countries
Franco phone African Countries
Europeans
Americans
Asian

22.

What is the CFO Tenure

Less than 4 years
4 - 9 years
Greater than 9 years

Part 2 Board and Ownership

1. What is the total number of outstanding shares of the company?
2011

2012

2013

2014

2016

2.

What is total number of shares of the company held by government?

3.

What is total number of shares of the company held by other companies/institutions?

4.

What is total number of shares of the company held by individuals?

5.

What is total number of shares of the company held by the Chairman?

6.

What is total number of shares of the company held by the CEO?

7.

What is the total number of shares held by the executive directors?

8.

Is the Chairman the same as CEO?

Yes

9.

No

Is the CEO the same as the Chief risk officer?

Yes

10.

No

Does the Chief risk officer reports to the Board of Directors?

Yes

No

11.

What is the total number of directors of the Company?

12.

What is the total number of executive directors of the Company?

13.

What is the total number of non-executive directors of the Company?

14.

What is the total number of women directors of the Company?

15.

What is the total number of women executive directors of the Company?

16

Number of shareholders holding more than 5% of the company's equity?

17

Is the largest shareholder an individual, corporate or government agency?

Yes

No

18

What is the number of shares held by the largest shareholder?

19

What is the number of shares held by largest single family members?

Part 3 Financial Information

1

Complete the following financial information on the company in x000

2011

xm
Turover
Foreign Sales
Depreciation
Interest and Finance Charges

2012
xm

2013
xm

2014
xm

2015
xm

Profit before tax

Profit after tax
Property, Plant & Equipment (Fixed
Assets)
Intangible Assets
Current Assets
Total Assets
Overdradt and loans
Current Liabilities
Long term Debt
Debentures and loan stock
Total Liabilities
Preference Shares
Total Equity
Total Equity and Liabilities
Number of issued shares
Share price at year end
Number of Employees
Staff Cost
Donation
IFRS Compliant (Yes/No)
Corporate Governance Report (Yes/No)
Corporate Social Report (Yes/No)

Part 4 Capital Structure Analysis Questionnaire

1.

To what extent does the following represent the CEO obective funstion/financial
management objective?

Please rate in terms of importance using the following Likert Scale

0 - Not important
1 - Fairly Important
2. Average Important
3 - Important
4 - Very Important
Achieve and maintain high debt ratings
Achieve a capital structure similar to that of other firms
Enhance and sustain financial flexibility, independence, & survival
Maximize the market price of bonds and stock
Maximize the market share (in terms of net total assets)
Maximize the Price Earnings Ratio
Maximize the Return on Investment
Maximize the Return on Equity
Maximize the growth of earnings per share
Maximize shareholders returns
Maximize the book value of a share of stock
Maximize the book value of the banks net total assets
Maximize the cash flow per share of stock
Minimize the risk of financial distress and bankruptcy
Minimize the companys cost of capital
2.

What factors affect how you choose the appropriate amount of debt for your firm?

Please rate in terms of importance using the following Likert Scale

0 - Not important
1 - Fairly Important
2. Average Important
3 - Important
4 - Very Important
Financial flexibiliy
Our credit rating (as assigned by rating agencies)
The tax advantage of interest deductibility
The volatility of our earnings and cashflows
We limit debt so our customers/suppliers are not worried about our financial stability
The transactions costs and fees for issuing debt
The potential costs of bankruptcy or near bankruptcy financial distress
The debt levels of other firms in our industry
The personal tax cost that our investors face when they receive interest income
To ensure that upper management works hard and efficiently
We try to have enough debt so that we are not an attractive target
If we issue debt our competitors know that we are very unlikely to reduce our output
A high debt ratio helps us bargain for concessions from our employees
3.
What factors affect your firm's choice between short- and long-term debt?
Please rate in terms of importance using the following Likert Scale
0 - Not important
1 - Fairly Important
2. Average Important
3 - Important
4 - Very Important
Matching the maturity of our debt with the life of our assets
We issue long-term debt to minimize the risk of having to finance in bad times
We issue short term when we are waiting for long term market interest rates to decline
We borrow short-term so that returns from new projects can be captured by shareholders
We expect our rating to improve, so we borrow short term until it does
Borrowing short-term reduces the chance that our firm will want to take on risky projects

4.

Has your firm seriously considered issuing common stock? If yes, what factors affect
your firms decisions about issuing common stock?

Please rate in terms of importance using the following Likert Scale

0 - Not important
1 - Fairly Important
2. Average Important
3 - Important
4 - Very Important
Earning per share dilution
If our stock price has recently risen, the price at which we can issue is high
Maintaining a target debt-to-equity ratio
Providing shares to employee stock option plan
The amount by which our stock is undervalued or overvalued by the market
Diluting the holdings of certain shareholders
Whether our recent profits have been sufficient to fund our activities
In case of paying a target by shares, the ability to use the pooling of interest method

Stock is our "least risky" source of funds

Using a similar debt/equity ratio as is used by other firms in our industry
Common stock is our cheapest source of funds
Issuing stock gives a better impression of our firm's prospects than using debt
The capital gains tax rates faced by our investors (relative to tax rates on dividends)
Inability to obtain funds using other sources

5.

Has your firm seriously considered issuing convertible debt (or issued debt in last ten
years)? If yes, what factors affect your firm's decision to issue convertible debt?

Please rate in terms of importance using the following Likert Scale

0 - Not important
1 - Fairly Important
2. Average Important
3 - Important
4 - Very Important
Ability to "call" or force conversion of convertible debt if/when we need to
Avoiding short-term equity dilution
Our stock is currently undervalued
Convertibles are an inexpensive way to issue "delayed" common stock
To attract investors unsure about the riskiness of our firm
Convertibles are less expensive than debt
Other firms in our industry successfully use convertibles
Protecting bondholders against unfavourable actions by managers or stockholders

6.

Has your firm seriously considered issuing (or issued) common stock or debt in foreign
countries in the last decade? If yes, what factors affect your firms decisions about
issuing in foreign markets?
Please rate in terms of importance using the following Likert Scale
0 - Not important
1 - Fairly Important
2. Average Important
3 - Important
4 - Very Important
Providing a "natural hedge"
Keeping the "source of funds" close to its "use
Favorable tax treatment relative to Europe
Market conditions may be better than domestic conditions
Lower interest rates in foreign markets
Foreign regulations require us to issue abroad

7.

How important are the following factors generally in the determinants of your
companys capital structure?

Please rate in terms of importance using the following Likert Scale

0 - Not important
1 - Fairly Important
2. Average Important
3 - Important

4 - Very Important
Asset Risk
Correct mispricing in past security issues
Historical performance of companys shares
Possibility of a takeover bid
Private consumption behavior
Foreign exchange rate fluctuation
Capital market performance
World economy performance
Nigerian economy performance
Importation of raw materials
Political Stability
Militancy and Terrorism Attack
Domestic fuel crisis
International Oil price volatility
Legal restrictions on share repurchases
Interest rate changes
Employees, Industrial Relations and Collective Bargaining
Customers Customer Service
Suppliers