Review the rubric to make sure you understand the criteria for earning your grade.
Conduct research on your subject company’s capital structure and financial risks. Gather financial
statement and market performance information on the company’s stock along with its main competitors.
Sources of research information might consist of (but are not limited to) annual financial reports published
by the company, news articles and analyst opinions, interviews with management, and reputable internet
sources that provide comparable industry financial information.
Recommended financial news and data sites include: Yahoo Finance, Reuters, Morningstar, and MSN
Money. Extensive data and analysis is also available through Off-Campus Library Services.
For instance, detailed company profiles can be found for most large companies in the Business Source
Complete database.
From the library homepage (OCLS), under “Article Databases”, click on the word “Business”. On the next
page click on “Business Source Complete”. You may be asked to login at this point, and should then be in
the Business Source Complete database.
At the top-center of the screen, look for the word “MORE”. Hover over the word and you will get a dropdown menu where you can choose Company Profiles. Click and you will be taken to a screen where you
can search for a company.
Take note a minimum of 12 unique research sources from reputable scholarly, news, or industry sources will
be required for the final paper. Keep track of your resources so you can appropriately list them in the
References section of your paper. The sources should represent an appropriately well-balanced variety of
perspectives.
Construct an evaluation of the company’s capital structure and financial risk.
Compare the company’s capital structure (use of debt and equity) relative to its main competitors. Discuss
any advantages or disadvantages such a structure might afford the company.
Discuss the characteristics of the company’s common stock, as well as any preferred stock or bonds. These
characteristics could include the recent market performance of these financial instruments, differing classes
of stock or special bond features, along with any public information about dividend history or policy.
Locate the company’s Beta from a reputable financial news source, such as Yahoo Finance or Morningstar.
Discuss the implications for the company of this Beta and evaluate it relative to the larger industry or the
company’s main competitor.
Locate or calculate the company’s Weighted Average Cost of Capital based on the information you have
uncovered. A good source for this information is valuepro.net. Discuss how this Weighted Average Cost of
Capital would serve as a competitive advantage or disadvantage for the company.
Identify areas of financial risk facing the company based on your analysis.
You should consult at least the latest three full years of the company’s financial reports in order to prepare
your analysis. These financial reports should be attached as an appendix to the completed paper.
The full, completed paper will consist of a minimum of 12 pages of content (not including cover, reference,
and appendix pages). It is therefore recommended this section should be 2-3 pages in length. Be concise
but thorough.
Your paper should be professionally written and follow full APA format, with all appropriate citations,
references, and formatting. It should include an appropriate cover page and a references section.
When you’ve completed your overview, save a copy for yourself and submit a copy to your instructor by the
end of the workshop.