Google's Capital Structure and Factors Influencing It

Financial Management
Assessment

Contents
MAIN BODY..................................................................................................................................3
Part 1: Initial Post.........................................................................................................................3
Part 2: Second Post......................................................................................................................4
References:......................................................................................................................................6

MAIN BODY
Part 1: Initial Post
1. Latest mix of long-term debt and equity for “GOOGLE.
Capital structure- It is the unique mix of debt and equity that a firm requires to fund its
overall activities and growth. Debt in the form of mortgages or municipal bonds, whereas
equity may form part of common stock, preferred stock, or dividend income. Short-term
debt is often deemed to be component of the system of finance. In the context of
GOOGLE company information about long term debt and equity is mentioned in such
manner:
Data in $ million 2018 2019
Long term debt 4012 4554
Equity 177628 201442
Total liabilities and
stockholders’ equity
232792 275909
The above table shows that company’s long term debts are higher in year 2019 as
compared to year 2018. This indicates that they might be dependent on loans to complete
their projects. In addition to this their equity is also higher for year 2019 compared to
year 2018. As in year 2018, value of equity was of $177628 million which rose by
$201442. This value shows that investors are making investment in the company in the
expectancy of gaining higher return.
2. Google’s capital structure compare to the industry standard.