Eneral Electric Long-term Financing Policy and Capital Structure, Risk Management Policy, and Acquisition Analysis

Long-term Financing Policy and Capital Structure, Risk Management Policy, and Acquisition Analysis

Submit one report (in APA format) on General Electric with three (3)1,050 word sections regarding that company s long-term financing policies and capital structure (section 1), risk management policies (section 2), and an acquisition analysis for that same company (section 3). Please note the last requirement of the acquisition analysis and its association with the risk portion of the report.
Section 1: Report on the company s long-term financing policy & capital structure.
Identify the firm s most recent long-term financing decision (e.g., debt, IPO, seasoned equity offering, secondary offering). Analyze the economic, business, and competitive background in which the financing occurred, and identify cost and risk trade-offs.
Identify your firm s book value, market value, and levered value according to the M&M model. For a 20 percent increase in assets, perform a quantitative analysis and recommend the optimal capital structure mix for your company. Your analysis should include an estimation of that company s cost of capital, price per share, and market value of the firm.
Discuss what changes you think would occur to your finance policy and capital structure if your firm was forced to consider re-organization and bankruptcy strategies.
a. Assume that your firm will be investing in the global market. What international investment and financing opportunities would you consider  and why? Also, discuss foreign exchange risk and give an example that analyzes how foreign exchange rates could cause a loss to the firm.
Section 2: Use the following list of risk management tools and describe the circumstances under which they would be applied to the risk categories of corporate (including risk associated with acquisition analysis and capital budgeting), economic, foreign currency, political, and other relevant global business risks.
Black-Scholes options pricing model
b. Simulation analysis
c. Hedging
d. Feel free to add other tools that you find that are relevant to your chosen company.