5 Ws Who: EMIs CFO Martin Steward What: Martin Steward is concerned about EMI continuing to maintain a combined GBP63

million annual dividend payment. Where: Britain When: Spring 2007 Why: EMI is experiencing revenue declines Executive Summary EMI Music Publishing was one of the major dominant record labels that dominated the music industry in the 21st century. As technology advanced and the use of the internet became more popular, more people transferred from a CD player to an MP3 player and began peer-to-peer file sharing over the internet. With illegal downloading taking place the music industry began to shrink. EMI was one of the music labels that began to see a negative outcome in their financial statements. Our team will be evaluating the financial position of EMI and give our recommendation to EMIs CFO Martin Stewart as to whether EMI should continue to maintain a combined GBP63 million annual dividend payment in 2007. Analysis As of FY2007 EMI has a: Current Ratio of .77 Debt Ratio of Efficient Ratio of Profit Margin of

Growth Ratio of

Financials Paragraph Based on their financial ratios from 2005-2007 EMIs current ratio has slowly been decreasing, while their debt has Before giving our recommendation to EMIs CFO Martin Stewart on the annual dividend payment, our group first analyzed who owned the majority shares of the record label. Exhibit 6 shows that the majority of shares (1,000,001 or more shares) are owned by large corporations with an 83.3 percentile. Only 0.2% of EMIs shareholders are individual investors who own 500 shares or less. Investors in the large percentile would eventually require a higher dividend payout being that they own a significant amount of shares (660,339,675). Therefore, the annual 8p dividend payout is a significant amount for those larger investors who own 1M+ shares, than for those who own less than 500 shares. So, not paying the scheduled dividend would significantly affect the larger investors who expect to receive the additional income figure from the dividend payment. Changing the dividend payout could eventually lead to the risk of having large investors sell their EMI stock, which would be reflected in the decline of EMIs stock price. Investors significantly affect the process of determining EMIs dividend policy as the companys future outlook. Therefore, our recommendation to CFO Martin Stewards is to have an annual a 4p to 6p dividend payout. This will eventually keep investors from selling their shares and having the stock price declining further. By keeping their historical 8p dividend payout will lead to having EMI to continue taking long-term debt to continue paying a GBP63m million annual dividend payment. EMIs team management seems more concerned about keeping their position

in their company, than the future position of EMI. Therefore, we also recommend management to be truthful with the current position of the company, and not misinform the investors that the company is doing great when it really is not.