Financial Strategy / Capital Appraisal
1) a. Appraise the capital structure using the most common tools.
b. Critically evaluate theoretical advantages and disadvantages of the company’s capital structure with regards to the debt and equity structure of the business. How these advantages and disadvantages apply to the specific company? Your answer must be accompanied by significant evidence from the literature (1000 words for 1a and 1b).
2) a. Assess the above company from a short-term financing perspective and comment on the application of the matching principle. What conclusions can you draw, how are they linked with the academic literature?
b. Critically evaluate the potential advantages and disadvantages of the GDF SUEZ’s strategy around the working capital and backup your answer with significant evidence from the literature (1000 words for 2a and 2b).