Please assist me with this.
The background readings of this Module provide plenty of information regarding both the issue of the capital structure decision and the concept of the weighted average cost of capital.
Using Ford, Disney, and Electronic Arts, discuss the business nature of each. What are each of the company's beta?
Upon reviewing the nature of the operations of the companies including the nature of their customers and products, what would you recommend should the capital structure (total liabilities or debt and equity proportions) be for each of the three companies? You don't have to give specific numbers.
What would you recommend for each company? Consider the nature of their business, the riskiness of the company, and the advantages and disadvantages of debt over equity financing in your answers.