Discuss the term optimal capital structure

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Reference no: EM132641084

Question (a) Calculate long-term debt/total assets and long-term debt/equity ratios over the last five years for the company allocated to you.

Question (b) Compare your firm's long-term debt/total assets and long-term debt/equity ratios with your firm's industry average and discuss the findings.

Question (c) Identify a matching firm in your firm's industry with similar size as your firm (use 2019 total assets to choose a matching firm. If your firm does not have data for the financial year end in 2019, use the latest year available). Compare your firm's long-term debt/total assets and long-term debt/equity ratio with your matching firm and discuss the findings.

Question (d) Briefly discuss the term "Optimal Capital Structure". Does your company have an optimal debt/equity ratio? Use calculations on business risk in your analysis. Justify your answer.

Question (e) Identify one dividend change (interim or final) announcement (note: compare interim to interim to identify changes in interim dividend or final to final to identify changes in final dividend using "dividend history from the DatAnalysis Premium Database" for the company allocated to you. Identify interim announcement date from half yearly report. Identify final announcement date from preliminary final report.

Reference no: EM132641084

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