Can you prepare a 5-8 page paper based on the criteria below? Chipotle is my chosen company and Panera is my company for investment.
- Financing Strategies Scoring Guide.
- Corporate Finance text, pages 550–511 and 612–613.
- Writing Feedback Tool.
This is the fourth component of your course project.
Based on the company you have selected for your client’s investment, prepare an analysis of financing strategies you would propose to pursue your recommendation. Use 5–8 pages, body only, not including graphics, as a guideline for your submission.
Include a discussion of the following topics in your financing strategy analysis:
- Capital structure analysis.
- Various debt and equity instruments.
- Impact on risk, return, earnings per share, price-earnings ratios, price per share, and company value.
- Valuation of financial assets (stocks and bonds) used to carry out the deal.
- Analysis of current dividend policies: any proposed changes.
- Analysis of merger or divestiture activities.
- Analysis of any leasing activities.
In analyzing the financing strategies of the client company, consider the following:
- Does the company have an optimal capital structure? If not, develop one.
- How does the company’s current debt ratio compare with the industry average?
- What impact might excessive leverage have on current and future shareholders? How might this affect the value of the firm?
- What are the firm’s current dividend policies? How were they developed? Could they change in the future? Why or why not, and what could be the impact on the various stakeholders?
- Has the company ever engaged in merger activities? Cite one or more examples.
- How might such activities benefit the company?
- Has the company ever engaged in leasing activities? Why or why not? How might this affect corporate performance? How have these activities been reflected in financial statements?