Compute the market debt to equity ratio

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Reference no: EM132175282

Question: 1. Select a publicly traded company.

2. Compute the market debt to equity ratio (Market value of debt /Market value of equity) for five years. Approximate the market value of debt by the book value of long-term debt. Use the stock price and number of shares outstanding to calculate the market value of equity. (50 points)

3. Show how the capital structure of the company has changed over time on a Table and a Graph. Does it appear that company has a stable target debt ratio? (50 points)

4. What is the capital structure of the industry? How do you explain the similarity or the difference between the firm and the industry? (50 points)

5. After researching, describe the trade-off theory and the pecking order theory using your own words. (50 points)

• Your explanations should be for someone who is intelligent, but NOT an expert in finance.

• All pages, tables, and graphs must have a number and a title.

• Use double-spaced Times New Roman-12.

• Cite your sources.

Reference no: EM132175282

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