Company name : Primary health care
*COMPANY AND INDUSTRY OVERVIEW
Provide a brief summary of the firm's business activities and business segments and recent developments in the company and its industry. This overview of up to 1.5 pages should also identify two comparable firms, which you will use in your analyses in the next section. You should fully justify your choice of the comparable firms.
CAPITAL STRUCTURE ANALYSIS
In this section you will analyse the company's capital structure and leverage policy. Your discussion in this section should include but not be restricted to the following:
- Historical Company Leverage/Financing Analysis and Peer/Industry Leverage Analysis
You should document the financing and leverage history of the company and characterise the company's historical (and current) leverage policy using:
- recent trends in the use of debt and equity and recent financing activities of the firm (debt and equity issues, placements and share buybacks); current and recent history of leverage and interest coverage ratios; management discussions about the firm's leverage policy.
• Does the company have a target leverage ratio?
• Does the past pattern of the company's leverage support:
- the managerial inertia theory?
- the security mispricing theory?
- recent capital expenditures (including mergers) and their financing
* Is the financing behavior of the company consistent with the pecking order theory?
You should document and discuss the firm's leverage policy relative to the leverage policies of comparable firms and to industry average leverage (information on industry average leverages will be Attached).