Key Topics: Dividend growth model, capital gearing, weighted average cost of capital, and risk-return analysis.

Models Covered: Dividend valuation, capital structure analysis, and cost of capital calculation.

Description: This case evaluates the financial structure of DD Co, focusing on dividend policy, capital gearing, and market value-weighted average cost of capital (WACC). It includes assessing the ex-dividend share price based on the dividend growth model, calculating gearing ratios, and exploring the risks and returns associated with different capital instruments. The case also addresses how changes in dividend policy might influence share prices and investor sentiment.