Different decisions regarding its capital structure

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Reference no: EM131497066

RadioShack earned almost $3 billion in net income from 2000 through 2010. Yet RadioShack’s stockholders equity was less at 12/31/10 than it was at 12/31/00. Where did the earnings go? What specific reasons motivated RadioShack management to have equity at this level? In hindsight, was this a wise decision? What might be different about RadioShack’s unhappy ending if it would have made different decisions regarding its capital structure?

Reference no: EM131497066

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