CAPITAL BUDGETING AND CAPITAL STRUCTURE (S4)

 For your final SLP, you will be doing some research on the capital structure of your four companies. You will also be doing an overall assessment of these four companies based on the research you did for your Module 1-4 SLPs. Write a two- to three-page paper addressing the following issues: 1. Go to investing.com or a similar page and find the long-term debt to total equity and the total debt to equity ratios for your four companies. Investing.com should also give you the industry averages for these ratios. Based on these ratios, do your four companies have a greater relative debt load than the average of their industry? Do any of them seem at risk for bankruptcy? 2. How does the debt ratios align with the credit ratings you found for your Module 2 SLP or the beta that you found for your Module 3 SLP? Do the companies with higher debt ratios have lower credit ratings or larger betas, and do the companies with lower debt ratios have higher credit ratings and lower betas? 3. Finally, what is your overall assessment of your four companies based on your research for your Modules 1-4 SLPs? Which ones do you think are good investments based on your research? Which companies do you think are bad investments? Rank your four companies from best to worst investment. This part of the assignment should be at least one page. REFERENCES – CAPITAL BUDGETING AND CAPITAL STRUCTURE (S4) Weston, J. (2016). Net present value. Finance for the Non-Finance Professional. Retrieved from: https://www.coursera.org/learn/finance-for-non-finance/lecture/wNUmz/net-present-value-npv Weston, J. (2016). Internal rate of return. Finance for the Non-Finance Professional. Retrieved from: https://www.coursera.org/learn/finance-for-non-finance/lecture/0Sj9e/internal-rate-of-return-irr Weston, J. (2016). Debt vs. Equity. Finance for the Non-Finance Professional. Retrieved from: https://www.coursera.org/learn/finance-for-non-finance/lecture/BlMNB/debt-vs-equity-financing Gitman, L. (2005). Chapter 9: Capital budgeting techniques: Certainty and risk. Principles of Managerial Finance. Pearson Education. http://wps.aw.com/wps/media/objects/222/227412/ebook/ch09/chapter09.pdf Here are some alternative links in case the link above does not work: http://wps.aw.com/wps/media/objects/338/347080/ebook/ch09/chapter09.pdf https://mbagroup12.files.wordpress.com/2012/03/gitman_12_prnc-mgt-fin13e_password_downloadslide_10.pdf Ross, S., Westerfield, R., Jaffe, J. & Bley, J. (2013). Chapter 17: Capital structure: Limits to the use of debt. Corporate Finance. McGraw-Hill. Retrieved from: http://highered.mheducation.com/sites/dl/free/0037151712/1007796/Sample_chapter.pdf . If the link is not working, try: highered.mheducation.com/sites/dl/free/0077151712/1007796/Sample_chapter.pdf Graulich, V. (2012). How to calculate NPV and IRR (Net Present Value and Internal Rate Return) EXCEL. IHateMath.com. Hamilton, K. (2014). Excel NPV IRR. Retrieved from: https://www.youtube.com/watch?v=HTJh5yxphMs Optional Reading Ross, S., Westerfield, R., & Jordan, B. (2007) Chapter 8: Net present value and other investment criteria. Essentials of Corporate Finance. McGraw Hill. http://novellaqalive2.mheducation.com/sites/dl/free/007000000x/484691/Part5_Chap8.pdf