Student Solution

-->

"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

1 University

1 Course

1 Subject

Corporate Finance Discussion 8

Corporate Finance Discussion 8

Q Using the 10K report for the firm you are analyzing, describe the capital structure of the firm. How much of the firm is financed with debt versus equity? Please answer this question in dollar and percentage terms. Calculate the degree of financial leverage of the firm.

View Related Questions

Solution Preview

The company’s capital structure is mainly composed of equity and debt. The company’s long-term debt in the year 2016 was $9,568 million. $384 million is the debt for short-term and current long-term debt portion. $877 million is the total equity in the year 2016. Capital Structure Total Debt to Total Capital- 92.41 Long-term Debt to Equity- 1,171.11 Total Debt to Total Equity- 1,218.12