Analysis of capitalization, Financial Management

You must analyze how the company is financed through equity and debt financing. You will discuss the level of leverage and how it compares to similar companies in the Industry.

• You will use ratio analysis and primarily the Capital Structure ratios. You will use a graph for each ratio to present the projected trends and provide intelligent discussion of what you observe. Stating they are going up or down and "this could be a problem" is not adequate. You should determine if the change(s) in the trend is significant and, if so, what could this mean? You should reference specific changes on the Balance Sheet, Income Statement and Cash Flow Statement to support your discussion. You can also use other details provide in the company's 10-K and Annual Report.

• After you have completed each ratio analysis ask yourself, "does this say anything important that is not obvious to the casual observer?" Always keep in mind that this is going to be used to make an important investment decision and should be at a high, informative level.

• Each ratio should have it's own graph and one benchmark ratio. Use the following ratios as a minimum:

a. Long-term Debt to Total Capitalization

b. Time Interest Earned

c. Total Debt to Total Assets

Posted Date: 3/19/2013 2:52:37 AM | Location : United States

Related Discussions:- Analysis of capitalization, Assignment Help, Ask Question on Analysis of capitalization, Get Answer, Expert's Help, Analysis of capitalization Discussions

Write discussion on Analysis of capitalization
Your posts are moderated
Related Questions
Market development A strategy which seeks to sell existing products in new geographical markets or new market segments. A strategy to find new uses for existing products or ser

Q. What is ABC Analysis? ABC Analysis: - ABC Analysis is a method of controlling different items of inventory. Generally a firm has to maintain several different items as inven

The straight value of a convertible bond is nothing but the value of a non-convertible bond having same characteristics. For example, assume that a company has tw

Frankfurt Stock Exchange The roots of the Frankfurt Stock Exchange may be traced back to the period of medieval fairs. As early as the middle of the ninth century, Emperor Ludwi

Chrysler decides to avoid the problems associated with exporting autos to Japan by building a plant in Japan. The cost is expected to be $1 billion with $500 million to be spent no

Define why we measure a project’s risk as the change in the CV. We calculate a project’s risk as the change in the coefficient of variation since this focuses on the change in

Explain the factors affecting the choice of a minimum cash balance amount. The smallest cash balance amount is determined by how easy it is to raise funds when needed, how expe

Define the concept of a real option. Discuss some real options a firm can be confronted with when investing in real projects. A positive APV project is accepted under the supposi

QUESTION 1 Part A i) Define the terms finance lease and operating lease and explain how you would distinguish between the two leases ii) When accounting for fina

that the business has far fewer linens than it needs, so he makes a major linen purchase on open account. Which of the following terms refers to the fact that partners Ma and Runni