How do assumptions about operating cash flows, capital structure, and IPO proceeds affect the dividend policy decision?

Case Study Topic: Dividend Policy at Fuyao Glass

Project Fuyao’s cash flows for the next year under the conditions of dividend decrease, maintenance, and increase, using end-period cash balances or short-term borrowing as the “plug”. How do assumptions about operating cash flows, capital structure, and IPO proceeds affect the dividend policy decision?

Follow the Harvard Business School Case Study Method.Describe and summarize the case study issues, challenges, and trends.