...GB550 Financial Management Unit 1 Final Project Click Link Below To Buy: http://hwaid.com/shop/gb550-financial-management-unit-1-final-project/ Unit 1 Final Project Overview: The Final Project is due at the end of Unit 5. Overview The purpose of the Final Project Research Paper is to examine capital-structure theory, issues, and debates, while showing how capital-structure choices affect a firm’s return on investment (ROI) and its risk profile. Directions Your Assignment is to select a publicly-held company and to analyze its capital structure, applying the theories and principles found in Chapter 15 of the text. The structure of your research paper should include: • A preview of capital structure issues • Business and financial risks related to capital structure • Modigliani and Miller’s [MM] capital-structure theory • Criticisms of the MM model and assumptions • Capital structure evidence and implications • Estimating the firm’s optimal capital structure A firm’s optimal capital-structure is that mix of debt and equity that maximizes the stock price. At any point in time, management has a specific target capital structure in mind, presumably the optimal one, though this target may change over time. For example, financial management may choose a 50% equity financing [stock] and 50% debt [bond] financing. Several factors influence a firms’ capital structure, including: • Business risk • Tax position • The need for financial flexibility • Managerial...
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