Firm’s Capital Expenditures Structure and Stock Value
This essay entails a research paper on a Firm’s Capital Expenditures and their Structure and Stock Value in the market. A Firm’s Capital Expenditures can be used to estimate the profits a company makes.
Firm’s Capital Expenditures Structure and Stock Value
Firstly, create an 8-10 page report in which you examine a major public company and provide a recommendation on how shareholder value could be enhanced. With resulting impact on the firm’s capital structure and stock value.
Secondly, based on the ratio results and research, from the following list of ways to financially engineer an increase in stock price. Evaluate each method, examine its pros and cons. Select the best ways for the firm to increase the stock price. Be as specific as you can by using qualitative assessments without proprietary company information.
Thirdly, evaluate strategies used to increase stock prices and shareholder value. Analyze strategies to employ cash to potentially increase shareholder value
Also explain its impact on financial risk of the entity, such as capital expenditures, mergers/acquisitions, stock buybacks, dividend increases, reduction of debt, expansion into a new geographic area, and introduction of new projects.
Forthly, analyze financial statements and ratio analysis to determine the optimal strategies. ○ Describe the subjective impacts that are unique to the firm and its industry through ratio analysis of the financial statements and qualitative research. ○ Relate the analysis to the strategies.
Also, identify the pros and cons regarding each strategy. Use behavioral models and theories to support your analysis and evaluation. Determine the best strategies, and describe how earnings and stock price can be increased by these choices. Comment on how the efficient market hypothesis may impact stock price with the recommendations.
Lastly, recommend the best strategies to gain the most optimal performance. ○ Provide justification and rationale for your recommendation. ○ Align your recommendation with analysis and data.