BUS 605 Week 5 Assignment

BUS 605 Week 5 Assignment

Required Resource

Text

Byrd, J., Hickman, K., & McPherson, M. (2013). Managerial Finance [Electronic version]. Retrieved from https://content.ashford.edu/

· Chapter 9: Capital Structure

· Chapter 10: Dividend Policy

Recommended Resources

Articles

Mergent. (n.d.). Mergent Online Quick Tips Preview the document. Mergent Online. Retrieved from Online Ashford Library.

Mergent Database for Company and Industry Research.

· To access go to the Ashford Library and select “Find Articles and More” in the top menu panel. Next, select “Databases A-Z” and go to section “M” for “Mergent”.

Modigliani & Merton (1958). The Cost of Capital, Corporation Finance, and the Theory of Investment. American Economic Review, 261 – 297. Retrieved from ProQuest database.

Website

Moneychimp (Links to an external site.). (http://www.moneychimp.com/articles/financials/fundamentals.htm)

FINAL PAPER CHOSEN TOPIC IS NIKE

Week 5 – Assignment

Comparing Capital Expenditures

Select a company and access the last three years’ annual reports. Next, select a company that is a direct competitor and download the previous three years’ annual reports.

Research Tip: The “Mergent” database in the Ashford Library contains company profiles and financial information for publicly traded companies and their competitors. To access this database enter the Ashford Library and select “Find Articles and More” in the top menu panel. Next, select “Databases A-Z” and go to section “M” for “Mergent”. For help with using Mergent use Mergent Online Quick Tips Preview the document.

Tip: For help with reading an annual report access this handy guide from Money Chimp (Links to an external site.) (http://www.moneychimp.com/articles/financials/fundamentals.htm)

Using the annual reports of both companies, complete the following in a three- to five-page paper, excluding title and reference page(s):

For each company, report the amount of capital spending for the past three years. Quantitatively determine whether the amount of capital spending has been consistent or if it has fluctuated. Be sure to provide the calculations used to determine your answer. Describe the capital expenditures of each firm and the factors that impacted the companies’ debt capacities and capital structures.

Next, compare the level of capital spending across the two firms. Point out how the spending was similar and/or different and speculate why the similarities or differences might exist. You must use at least three scholarly sources in addition to the text. Support your comparison with evidence from the text, external sources, and articles/reports from the Mergent database in the Ashford University Library.

Format the paper according to the APA 6th edition style guide as outlined in the Ashford Writing Center (Links to an external site.) . Be sure to properly cite your resources using APA style.

Carefully review the Grading Rubric (Links to an external site.) for the criteria that will be used to evaluate your assignment.