Background
The Signature Assignment summarizes your learning throughout the course and applies to the two paired companies you selected during at the beginning of the course. You will compare and contrast the totality of capital management strategies of your two companies.
Instructions
Conduct a side-by-side comparison of each company’s historical and current Weighted Average Cost of Capital, Capital Structures, Free Cash Flow, Corporate Governance, Sources and Uses of Capital, Business Risks, Corporate/Market Value, Stock Price and Stock Beta, IPO History (if any), International Operations, and Financial Leverage (use of debt to finance operations). Also, address any Merger & Acquisition history, future opportunities, and current Corporate Dividend strategies for both companies. Is there a historical or current real or perceived Agency Conflict, which could involve growth strategies, use of available Free Cash Flow for dividends, etc?
DO NOT just provide numbers; 80% of your grade on this assignment is based upon your original analysis of each of the compared variables. Additionally, review and evaluate each firm’s ESG/DEI/S-JEDI policies and how they impact corporate financial and reputational performance, including their relative impact on shareholder wealth.
Length: 6 - 8 pages, not including title and reference pages.
References: Provide at least 4 peer-reviewed scholarly articles from the Library.
submit as pdf
Textbook
Brigham, E. F., & Ehrhardt, M. C. (2020). Financial management: Theory and practice (16 ed.). Australia; Boston, MA: Cengage Learning.
Chapter 8
Chapter 17
Chapter 23
Chapter 24
Access your textbook via the Bookshelf tab in the top navigation bar of your course.
Articles
- What Is Chapter 7 Bankruptcy? This link opens in a new windowDeNicola, L. (2023, Jun 7). What is chapter 7 bankruptcy?. Experian. https://www.experian.com/blogs/ask-experian/what-i...
- Employee Costs of Corporate Bankruptcy. This link opens in a new windowGraham, J. R., Kim, H., Li, S., & Qiu, J. (2023). Employee Costs of Corporate Bankruptcy. Journal of Finance (John Wiley & Sons, Inc.), 78(4), 2087–2137. https://doi.org/10.1111/jofi.13251
- CEO power, corporate risk management, and dividends: disentangling CEO managerial ability from entrenchment This link opens in a new windowAdams, M., Jiang, W., & Ma, T. (2024). CEO power, corporate risk management, and dividends: disentangling CEO managerial ability from entrenchment. Review of Quantitative Finance and Accounting, 62(2), 683–717. https://doi.org/10.1007/s11156-023-01216-6