The issuance of new debt and repurchasing of company owned stock looks to be the safest hedge against an insecure future/economy and stiffening competition from start ups and less debt-laden companies. The data, from the stock ratios down through the final WACC computations tend to quantifiably support our recommendations for the MCI Board. Couple this with the tax shelter benefits that are still currently below their cap, this growing telecommunications force should weather the late 90's storm and produce better than average dividends and earning estimates to maintain its stock prices and therefore its foothold in this lucrative and burgeoning field.
Works Cited
Ross, Stephen, Westerfield, Randolph, & Jaffe, Jeffrey. Corporate Finance. McGraw-Hill Primis Custom Publishing.
2002.
MCI.http://www.MCI.com. 2003.