The purpose of this assignment is to analyze a firm’s capital structure and its impact on firm performance. Explain core concepts related to business risk, and recommend sound financial decisions based on analysis of a firm’s capital structure and capital budgeting techniques.
Read the Chapter 15 Mini Case in Financial Management: Theory and Practice. Complete Parts 1 and 2.
Part 1: Using complete sentences and academic vocabulary, please answer questions A through C.
Part 2: Using the mini case information, write a 250-word recommendation of the financial decisions you propose for this company based on an analysis of its capital structure and capital budgeting techniques. Explain why you chose this recommendation and how it will impact the performance of the firm.