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Identify the capital structure issues

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Reference no: EM132984851

Question - Mini-Case - marry is a newly appointed CFO in a listed Mid-Sized company in the food industry. the company financial performance is stable, with ROE is around 8-10%, which is above industry average;  EBIT (Operating Income) interest coverage is sufficient, while company has some seasonality in terms of sales, thus has impact on cash flows. Long-term capital financing the company bond credit rating is A-, which means easy to raise debt, cost is lower than short term borrowings.

Identify the capital structure issues that CFO must address and explain the effects and significance of these issues.

Reference no: EM132984851

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