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C. Attendo AB claims that their Dividend Policy is to distribute 30 percent of the net profit (Attendo AB) and that it must be based on Attendo’s investment opportunities and financial position (Attendo AB, 2019. P.46). This policy was established with their IPO, in 2015. Furthermore, the year 2019 was rough with weak results that ended in net debt, higher than previous years. Thus, Attendo AB concluded that for the financial year 2019 there would be no dividends distributed and that the profits be retained. For the previous year, 2018, their dividend per share was 0.6 SEK with a dividend yield of 0.8%, for comparison (Attendo AB, 2019. P.85) Attendo AB explains in their Annual Report (Attendo AB, 2019. P.46) that in 2019 they renegotiated their loans. They entered a new agreement with three new banks (Attendo AB, 2019. P.64). The new agreement is three years with an option to extend it by two years. There is a liquidity as well as a financing risk with Attendo AB not being able to meet their payment obligations. However, to reduce this risk they maintain a liquidity reserve which includes cash, bank balances, and the unutilised portion of existing credit lines (Attendo AB, 2019. P.66). Furthermore, the group's central treasury department forecasts cash flow so that they can make sure to keep sufficient liquidity in the business. Attendo AB’s net debt(EBITDA) and interest coverage ratio is reanalysed continuously to make sure that they are safe. Currently their earnings are in a downgoing trend, with their earnings per share (EPS) going from, 3.39 year 2017, to 1.52 year 2018 and finally, 0.51 year 2019. (Attendo AB). Thus, you could argue that their earnings are not very stable. Attendo AB currently have investment opportunities regarding shortage of beds in care for older people (Attendo AB, 2019. P.16) and they reference the National Board of Housing, Building and Planning (Boverket) in their report, citing that “127 out of 290 local authorities in Sweden had a shortage of nursing homes”. Furthermore, Attendo AB explains that there will be a sharp increase in the population of people over the age of 85 in the next 15 years. They conclude that there is a need of 85.000 additional nursing home beds in the Nordic countries. They believe that they as a leading private provider is well suited to take advantage of the growth opportunities when the local authorities of the Nordic countries decide to open this market more to private alternatives (Attendo AB, 2019. P.44). This is, according to Attendo AB, already an ongoing theme. However, in Finland, Attendo AB is concerned with the overly high rate of establishment in the market and strict staffing requirement and believes that this will have a negative impact on the implementation of new units in the upcoming years. Although, they do believe that the Finnish market is good long term. The party that mostly controls the firm and is the second highest governing body is the board of directors. Attendo AB’s board consists of three committees, which are: the Audit Committee, the Compensation Committee, and the Investment Committee (Attendo AB, 2019. P.30). Members of the aforementioned may be independent of shareholders or the company or both. These board members annually conduct board evaluations as well as evaluating the CEO of the company. However, Attendo AB also performs general meetings, which is the highest governing body of the group (Attendo AB, 2019. P.29). These meetings are where the shareholders meet up and decide the general direction of the company. The two largest shareholders of the company are NORDSTJERNAN AB, owning 18.48% of the company, and PERTTI KARJALEINEN, owning 11.18% (Attendo AB). It is possible that the future will dilute the ownership of Attendo AB if the largest shareholders decide to sell their shares. Which is increasingly possible if Attendo AB decides to keep retaining their profits, causing them to be a less attractive option to invest in. However, you could argue that the shareholders trust the management due to the price of the stock not dropping further after the decision to withhold dividends. Recently, as of the last six months, the value of the shares have been slowly going up as well (Yahoo Finance, 2020). However,  you could also make the argument that to achieve more growth in the company and produce more value in the future it is good that they retain their earnings to reinvest, and when the need for expansion is not as large anymore it is easier to give higher dividends. It  is also important for Attendo AB to consider if their investors would prefer capital gains over regular dividends, which could be the case if a large number of shareholders already have a high income from other sources. An option would be to give shareholders more shares of the company. However, this could in turn dilute the ownership of the company further.  There are also legal considerations that need to be made, such as there need to be sufficient distributable profits, the directors must consider the company’s current and future financial position, and also it has to comply with the directors duties. The directors duties means that they have to act in a way to promote the company’s success for everyone involved. The aforementioned are part of the Companies Act, which must be considered when distributing dividends (The Swedish companies act, 2005). D The 10 largest shareholders have 65% of 496,136 shares per December 31th 2019. TThe largest owners as per December 31 2019 are Nordstjernan AB (19 percent), Pertti Karjalainen (14 percent), Incentive AS (7 percent),

Swedbank Robur Fonder (6 percent) and Carve Capital AB (4 percent) and each share has equal voting rights, which means they have the majority of the voting right. Attendo was founded in February 1985 in a time when almost all care and nursing was handled by public public monopolies. Almost no one could imagine that private actors could be a part of swedish welfare. Over the 35 years since then, with the idea of modernizing elderly care and setting new standards and creating value for both the shareholders and their clients. As we have already mentioned the ownership structure the majority of voting rights is held by several companies, which means others can not affect much on the decisions. That is also one way to create value, because we think that giving everybody their right to make decisions will probably cause more harm than creating value. As they say many chefs in the kitchen will probably cause poor taste. Stockholders with competing interests can cause problems for the companies dependent on how many of the shareholders have voting rights. In this case there are different companies that own the majority of Attendo and they may have different opinions than the board which lead to conflict of interest. What otherwise can influence the value of Attendo is corporate cross holdings , which is a type of ownership structure when one listed company on the stock market owns another listed company. An increase or decrease in the company’s stock value will then also affect the other company value, depending on how much they own. What we know, Attendo does not own other listed companies. E. We have compared each company with their theoretical price and their actual price. When the theoretical price is below the actual price that means the company is undervalued and vice versa. 0.367113

27.70597

11.14067

8.924275

P/E=8.924275+11.14067*Risk+27.70597*G  rowth+0.367113*Payout ratio for each company. Company

P/E

Risk

Growth

Payout ratio

Astra

19.7

1

13.70%

32.20%

P/E= 23.98 Undervalued.

Glaxo Wellcome plc

28.4

1.22

14.50

62.20%

P/E= 26.76 Overvalued.

Merck

22.8

1.14

17.10%

42.70%

P/E= 26.52 Undervalued.

Novartis AG

24.4

1.2

16.40%

34.50%

P/E= 26.96 Undervalued.

Bristol-My ers Squibb

24.4

1.02

14.80%

43.6%

P/E= 24.54 Fairly valued.

Pfizer Inc

32.9

1.01

21.50%

39.2%

P/E= 26.28 Overvalued.

Roche Holding AG

25.5

0.81

16.60%

15.7%

P/E= 22.60 Overvalued.

Novo Nordisk

25.1

1.1

15.50%

16.9%

P/E= 25.53 Fairly valued.

Zeneca

23.1

0.83

19.40%

49.4%

P/E= 23.73 Fairly valued.

American Home

21.6

0.92

11.80%

51.1%

P/E= 22.63 Undervalued.

Prod. Eli Lilly & Co

27.9

1.07

2.70%

48.3%

P/E= 21.77 Overvalued.

Smithkline Beecham

30.5

1.32

16.20%

53.1%

P/E= 28.31 Overvalued.

Abbott Laboratori es

21.3

0.89

12.30%

37.6%

P/E= 22.38 Undervalued.

Rhone-Po ulenc Rorer

20

0.93

15.50%

33.8%

P/E= 23.70 Undervalued.

Pharmacia & Upjohn

20.4

1.05

15.30%

60.1%

P/E= 25.08 Undervalued.

Schering-P lough

27.7

1.19

17.30%

33.4%

P/E= 27.09 Fairly valued.

Warner-La mbert

28.5

0.83

28.80%

41.2%

P/E= 26.30 Overvalued.

Sources: Attendo AB stock prices (weekly data 5 years & monthly data 5 years) https://finance.yahoo.com/quote/ATT.ST/history?period1=1448928000&period2=1602547200&interval=1wk&filter =history&frequency=1wk&includeAdjustedClose=true https://finance.yahoo.com/quote/ATT.ST/history?period1=1448928000&period2=1602547200&interval=1mo&filte r=history&frequency=1mo&includeAdjustedClose=true OMX Stockholm 30 Index prices (weekly data 5 years & monthly data 5 years) https://finance.yahoo.com/quote/%5EOMX/history?period1=1446336000&period2=1602460800&interval=1wk&fil ter=history&frequency=1wk&includeAdjustedClose=true https://finance.yahoo.com/quote/%5EOMX/history?period1=1446336000&period2=1602460800&interval=1mo&fil ter=history&frequency=1mo&includeAdjustedClose=true

Attendo AB Data ref: https://finance.yahoo.com/quote/ATT.ST/financials?p=ATT.ST http://investors.attendo.com/en/financial-data http://www.nasdaqomxnordic.com/aktier/microsite?Instrument=SSE115956 Ambea Data ref: https://finance.yahoo.com/quote/AMBEA.ST/financials?p=AMBEA.ST https://www.infrontanalytics.com/fe-EN/40490SS/Ambea-AB/beta http://www.nasdaqomxnordic.com/aktier/microsite?Instrument=SSE135504 Humana Data ref: https://finance.yahoo.com/quote/HUM/financials?p=HUM https://www.infrontanalytics.com/fe-EN/34952NU/Humana-Inc-/Beta http://www.nasdaqomxnordic.com/aktier/microsite?Instrument=SSE120363 HANDICARE GROUP Data ref: https://finance.yahoo.com/quote/HANDI.ST/financials?p=HANDI.ST https://www.infrontanalytics.com/fe-en/SE0010298109/HANDICARE-GROUP/beta http://www.nasdaqomxnordic.com/aktier/microsite?Instrument=SSE144603&name=Handicare%20Gr oup&ISIN=SE0010298109 Medicover AB Data ref: https://finance.yahoo.com/quote/MCOV-B.ST/financials?p=MCOV-B.ST https://www.infrontanalytics.com/fe-en/SE0009778848/Medicover-AB/beta http://www.nasdaqomxnordic.com/aktier/microsite?Instrument=SSE138158&name=Medicover%20B& ISIN=SE0009778848 Attendo AB (2019) ANNUAL REPORT & SUSTAINABILITY REPORT. P. 16, 29, 30, 44, 46, 64, 66, 85. https://vp220.alertir.com/afw/files/press/attendo/202003183928-1.pdf Attendo AB Dividend and Repurchase of Shares. Acquired 2020. https://www.attendo.com/en/investor-relations/the-attendo-share/dividend-and-repurchase-of-shares/ Attendo AB Financial Information. Acquired 2020. https://www.attendo.com/en/investor-relations/financial-information/ Attendo AB Major Shareholders. Acquired 2020 https://www.attendo.com/en/investor-relations/the-attendo-share/major-shareholders/ The Swedish companies act (2005) (SFS 2005:551) https://law.au.dk/fileadmin/www.asb.dk/omasb/institutter/erhvervsjuridiskinstitut-skjultforgoogle/EMCA/NationalCo mpaniesActsMemberStates/Sweden/THE_SWEDISH_COMPANIES_ACT.pdf

Yahoo Finance (2020) Attendo AB (publ (ATT.ST) Acquired 2020. https://finance.yahoo.com/quote/ATT.ST?p=ATT.ST...