Lead questions for discussion of Polaroid case1. What are the objectives for the policy review? What is premise?2. What are the likely financial requirements of Polaroid in coming years/ What are the risks associated with the same?3. If polaroid wants to ride up the credit rating band , what will be the impact on financial flexibility?4. How does WACC of Polaroid change with their debt policy/5. Which policy would you recommend?

The financial figures are given in Exhibit 1. The debt related information is in exhibit 4 and exhibit 9 gives the rating details. Exhibit 11 gives cost of capital estimates.