Now you understand how financial decisions are made. Prepare the final section of your INVESTMENT ANALYSIS and Recommendation Paper, consisting of the capital structure choices, as well as an executive summary of your research.
You will examine the mix of debt and equity that Turnstar uses. After finding this information:
Compare this to an industry average or a main competitor. What are the differences?
Based on what you know about Turnstar, do these differences seem appropriate?
Relate your Turnstar?s capital structure choices to the appropriate capital structure theory(ies).
Also, as a component of your executive summary, obtain the current stock price for Turnstar and use it as an additional calculation. Based upon all of your research, would you recommend investing in Turnstar company? Justify your answer.
Use all of the information that you have gathered in previous weeks (financial tools to evaluate current financial data and use your calculations to justify those decisions, use annual reports as a TOOL in capital budgeting to determine potential real options, establish a market risk premium, calculate the weighted average cost of capital, and compare the mix of debt and equity that Turnstar uses to an industry average) And combine as your Investment Analysis and Recommendation Paper, which will comprise a minimum of 8-10 pages in APA format.