MCI Communications Corporation Essay

1-What is the likely level of MCIs external needs over the coterminous several years? By how much could they be expected to vary? Why?2-Critique MCIs past pecuniary strtategy, giving attention to the types of securities on which it has relied. Why did MCI finance itself in the mode it did?3-Based upon your analysis of the outlook for MCI and the competitive and regulatory evolution of the industry, recommend a capital structure policy for MCI and defend your proposal against plausible events.4-Assume that Mr.English, the MCI chief financial officer, has the following financial alternatives available to him as of April 1983a)$500 million of 12 1/2 , 20 year subordinated debenturesb)$400 million of common bourgeonc1)$600 million 7 5/8 20 year convertible subordinated debentures with conversion price of $ 54 per dower (i.e., $1,000 bond would be converted into 18.52 conmmon shares)c2) $1 billion of a unit package consisting of a $1000 7 , 10 year subordinated debenture and 18.18 wa rrants, each entitling the holder to purchase one share of MCI common stock for 55$. The warrants would be exercisable until 1988 and are callable. The exercisei price of the warrants would be payable either in cash or by surrender of the debentures wanted at their principal amount.Which if any of these alternatives would you recommend that Mr.English take? Why? In broad outline, what financing steps would you recommend he take overthe next several years?