What types of securities are used to finance the company

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Reference no: EM131716845

Financials research on Spirit Airlines -

1. Examine the capital structure of your firm.

a. What types of securities are used to finance the company?

b. What is the total Market Value of these securities?

c. Use Yahoo Finance to look at a competitor firm's capital structure and compare to your own firm. Discuss differences or similarities.

d. What conclusions do you draw by looking at your firm's capital structure?

2. Examine transactions with the firm's capital providers over the past three years.

a. Has your firm undergone any major restructuring in the past three years such as a stock repurchase, bond refunding, etc? If so, discuss the implications.

b. In terms of rewards to shareholders, how has your firm chosen to distribute benefits?

i. Does your firm pay regular cash dividends? If so, what is the current dividend yield?

ii. Alternatively, has the firm initiated stock repurchase plans for shareholders?

3. Examine your firm's working capital management

a. Calculate the Inventory conversion period, Receivables collection period, and Payables deferral period.

b. Calculate the cash conversion cycle.

c. Calculate Net Operating Working Capital.

d. Would you describe your firm's working capital policy as relaxed, moderate or restricted?

e. What is the firm's cash balance as a percentage of total assets? See page 781 for the average industrial firm's cash balance percentage. Discuss the firm's level of cash.

Reference no: EM131716845

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len1716845

11/11/2017 12:41:49 AM

Detailed Question: I need to do some financial research on Spirit Airlines and use the data to answer the questions assigned. Don’t have a limit but would like for answers to be detailed. What is the firm’s cash balance as a percentage of total assets? See page 781 for the average industrial firm’s cash balance percentage. Discuss the firm’s level of cash.

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