Research on the capital structure of four companies (given through chat upon agreement). You will also be doing an overall assessment of these four companies based on the research
Create a two- to three-page paper addressing the following issues:
Go to investing or a similar page and find the long-term debt to total equity and the total debt to equity ratios for your four companies.
Investing should also give you the industry averages for these ratios. Based on these ratios, do your four companies have a greater relative debt load than the average of their industry? Do any of them seem at risk for bankruptcy?
How does the debt ratios align with the credit ratings you found for your Module 2 SLP or the beta that you found for your Module 3 SLP? Do the companies with higher debt ratios have lower credit ratings or larger betas, and do the companies with lower debt ratios have higher credit ratings and lower betas?
Finally, what is your overall assessment of your four companies based on your research for your Modules 1-4 SLPs? Which ones do you think are good investments based on your research? Which companies do you think are bad investments? Rank your four companies from best to worst investment.