Tui Mod 4 Case Essay

941 Words Aug 19th, 2012 4 Pages
1) Based on the readings of the Module, and upon reviewing total debt/equity ratios, company betas, profitability ratios, company revenue, assets, and liabilities, and the nature of the operations of the companies including the nature of their customers and products, what would you recommend should the capital structure (total liabilities or debt and equity proportions) be for each of the three companies?
I don’t know how to even answer this question and it makes me frustrated.
2) In your report, please include the information together with other information that you think is necessary to above question:
3) ●The nature of the business in brief (all three companies)
Ebay – “World’s largest online marketplace” Where anyone can sell or
…show more content…
Total long term liabilities is 4,249,000 from long term debt, other liabilities, deferred long term liabilities charges, minority interest, and negative goodwill.
Alaska Air – Total current liabilities is 1,509,600. Total long term liabilities is 4,021,800 from long term debt, other liabilities, deferred long term liabilities charges, minority interest, and negative goodwill.

6) ●Revenue of each company
Ebay- Total revenue – 11,651, 654.
Clorox – Total revenue – 5,231,000.
Alaska Air – Total revenue – 4,317,800.
7) ●Total debt/equity ratios of all three companies
Ebay -
8) ●Profit margin, return on assets, and return on equity ratios of all three companies
Ebay – profit margin 28.67%. Return on assets 6.24%. Return on equity 21.25%.
Clorox – profit margin 9.89%. Return on assets 13.25%. Return on equity not listed.
9) ●Betas of all three companies
Ebay – 0.97
Clorox – 0.35
Alaska Air – 1.05
10) ●The riskiness of all three companies in brief (e.g., the higher the beta, the higher the risk)
Ebay – Has a beta of 0.97 which is a high risk if invested into.
Clorox – Low risk company because of the 0.35 beta.
Alaska Air – Highest risk company due to beta being over 1.00.
11) ●The advantages and disadvantages of debt over equity financing
Ebay –
Clorox –
Alaska Air -
12) 2) What do you perceive you have learnt in Module 4 Case Assignment? Which of the following learning objectives do you feel you have mastered?
I have learned how to look up the

Related Documents