Arley Davidson How to Evaluate the Capital Structure of a Company?
The best way to evaluate any companys balance sheet is by assessing and analyzing its working capital adequacy, asset performance and capital framework. This research paper aims at evaluating the strength of a balance sheet through professional evaluation of its capital structure.
Choose a U.S. Company that you are interested in and get approval from your Instructor.
The paper should be 3-6 pages of content excluding title and references page. APA formatting required. Use title page, references page, and citation. Please use reliable academic references.
Include in your paper general history and background of your company. Describe the owners method of financing the start of the company. Did the owner borrow the funds, use personal funds, raise capital by issuing stock? Also, include specific ratios (and apply them to your company) as seen on page 86 in your textbook. Compare the ratios and financial condition of your company to that of its industry.
Evaluate your companyas working capital adequacy, its cash flow, its financing history (has it borrowed money from financial institutions, or issued bonds, stocks, etc.) and future plans. If the company issues stock, is it growth or income-oriented. Tell a little about its dividend history and earnings projections. What are the future plans for the company?