Assignment title: Cost of Capital and capital structure of a publicly listed Company
Learning Outcomes addressed in this assignment Describe and explain the issues of capital structure
Describe, derive, interpret and apply models which have been proposed to illuminate these issues
Solve related numerical problems
Describe, explain and illustrate the evolution of the debate upon these issues
Compare and contrast differing opinions and positions in these debates
Please note that any work submitted that clearly exceeds the word length/word limit will automatically be penalised by an appropriate reduction in marks.
Cost of Capital and Capital Structure of a Publicly Listed Company
Using information that you could obtain by downloading the annual reports of publicly listed companies and any other relevant information answer the following questions:
• Estimate the company’s costs of equity and debt capital as at the latest balance sheet date and describe how the company’s capital structure has changed over time. Your description of the company’s capital structure should contain a detailed numerical analysis.
• Compare your company’s capital structure with two competitors’ and explain why the capital structures have been adopted. Your answer should be based on finance theory and your knowledge of the company and the industry it operates in.
• Discuss the impact of ‘current global financial market issues’ on your chosen company’s capital structure.