Capital Structure Analysis

  Analyze a publicly held company’s capital structure by applying the theories and principles presented throughout the course. The capital structure analysis should include the following sections: 1. A review of the company’s capital structure and major issues. 2. A review of business and financial risks related to the company’s capital structure. 3. Criticisms of the company’s capital structure supported by information from the textbook or appropriate academic resources. 4. An estimation of the company’s optimal capital structure through the use of ratio analysis which will include a discussion of liquidity, asset management, debt management, profitability and market value ratios, and a DuPont analysis. Refer to Table 3.1 for a list of the ratios that should be included in the ratio analysis section of the paper. Do not simply calculate and list the ratios. This section should include a discussion of the “meaning behind the numbers”. 5. An interpretation of the financial ratios through cross-sectional analysis benchmarking either with another company in the industry or industry standards 6. A summary of your capital structure analysis that addresses the company’s business risk, need for financial flexibility, growth opportunities and threats based upon it capital structure.