Data Analysis Analysis of companys capital structure policies (maximum 550 words) (6+6+15+3=...
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Finance
Data Analysis
Analysis of companys capital structure policies (maximum 550 words) (6+6+15+3= 30 marks)
Describe the capital structure considering the following criteria:
Why is capital structure analysis useful for a company? (discuss optimal capital structure, firm value, why higher EPS does not always support for the optimal capital structure).
What does the capital structure theory say about a company's capital structure?
Assess firms capital (i.e. capital structure of the selected company) over five-year period (i. e. 2017 2021) using the data collected from DatAnalysis Premium database. In your analysis
Use debt ratios, debt equity ratios and Times interest earned ratios to assess the companys current performance against its past performance ( i. e trend analysis) and its current performance against its competitors (i.e. industry analysis). Please use 5year financial data from 2017 to 2021 (please conduct performance analysis over the 20172021 period).
Based on the findings found in a, what is your opinion about the company's capital structure, specifically degree of financial leverage. (HINT: Make an assessment about its firm capital structure based on these solvency ratios).
Students are required select one of following 3 companies and download company annual reports 2017 to 2021 (five-year annual reports) No SX Code Company Name Market Return Rate (rm) 1 AMC.AX Amcor Plc 11.49 2 FCG.NZ Fonterra co-op Limited 11.49 3 BLS.AX BlueScope Steel 11.49
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