What is long-term debt-common stock and retained earnings

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Reference no: EM13811801

Compare and contrast the capital structures of the following firms and answer the related questions: JC Penney-a clothing retailer, Google- a technology Company and Johnson and Johnson- Health and Wellness Company.

1. What is percentage of long-term debt, common stock, retained earnings and preferred stock in each company’s capital structure? Prepare a table to display your results.

2. Discuss each company’s relative amount of long-term debt, common equity and retained earnings.

3. Evaluate the level of business risk associated with each company and industry. Evaluate the appropriate use of debt as it relates to each company and its industry.

4. Would any of three companies benefit from the following, why or why not?

a. Stock Dividend

b. Stock Split

c. Stock Repurchase

5. Research and provide information each company’s dividend policy.

Reference no: EM13811801

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