Reference no: EM131224993

Write an analysis in which you include the following:

• Select two publicly traded companies within the same industry and present the DuPont analysis for each of these companies. Explain how the debt has served to influence the ROE DuPont performance results for each, and describe how volatility plays a role in the debt choices in the context of this DuPont analysis.

• Consider each of the following capital structure theories: the tradeoff theory, the signaling theory, the debt financing to constrain managers argument, and the pecking order hypothesis. Briefly describe each of these "theories" and then order them in terms of which "theory" you believe to be most persuasive down to which you believe to be least persuasive. Form arguments defending your rankings and reference and discuss related academic studies to support your position.

• Using the NCU library, identify an academic article that tests or provides insight into one of the above theories (note the trade-off theory maybe be discussed as an extension to the M&M proposition). Explain the nature of that study discussing the research questions, the data, the methodology and the results. Form what you believe would be an important next research question that would extend the results within that area of study. Discuss that proposed research question.

Support your paper with at least five resources. In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included. Your paper should demonstrate thoughtful consideration of the ideas and concepts that are presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards. Be sure to adhere to Northcentral University's Academic Integrity Policy.