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ACC508 Information Systems, Decision Support Systems and Cloud Computing

   

Added on  2019-11-25

13 Pages1708 Words122 Views
Assessment Three- Part BReport on APN Outdoor’s Capital Structure[Insert Student Name][Insert Student Number]
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EXECUTIVE SUMMARYA capital structure refers to a company’s sources of finance. Financing can range fromequity to debt, however, in most cases it will usually be a combination of both. Thesources of debt include trade credit, short term debt loans and long term debt. Thesources of equity include retained profits and issuance of shares. Analyzing the capital structure of a company can provide a lot of valuable information toinvestors and creditors regarding its value creation. For example, a company with aheavy reliance to debt would be considered more aggressive and hence more risky thana company that is financed via equity. That being said, this company may experience ahigher growth rate. The goal of many companies is to maximize their shareholder value. One of the ways tomaximize shareholder value is to minimize its cost of debt and equity. The optimalcapital structure of a firm is the mix of equity and debt that minimizes a firm’s cost ofcapital.i
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TABLE OF CONTENTSEXECUTIVE SUMMARY..................................................................................................................................iTABLE OF CONTENTS...................................................................................................................................iiLIST OF TABLES............................................................................................................................................iiiCHAPTER 1 : INTRODUCTION.......................................................................................................................1CHAPTER 2 : ANALYSIS OF CAPITAL STRUCTURE.........................................................................................2CHAPTER 3 : OTHER KEY FINANCIAL RATIOS................................................................................................5CHAPTER 4 : CONCLUSION- SHAREHOLDER VALUE.....................................................................................6REFERENCES................................................................................................................................................7APPENDIX....................................................................................................................................................8ii
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LIST OF TABLESTable 1: Pre Tax Interest Rates........................................................................................................3Table 2: WACC.................................................................................................................................4iii
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