Choose one of the companies whose financial statements appear in Appendixes D or E. Obtain the company’s most recent financial statement, or get its balance sheet on the Internet. Find one or two recent articles that describe the company’s changes in its capital structure.

Required

a. Compare the company’s capital structure as of the original financial statements (in the appropriate appendix) to the company’s most recent capital structure.

b. Document or identify any possible reasons for changes in the company’s capital structure.

c. Identify any problems in the firm’s original capital structure or in its most recent capital structure. What might the firm’s managers do to resolve these problems?

d. Identify any inconsistencies in the firm’s behavior. That is, were its actions consistent with the problems that you identified? Discuss these inconsistencies, particularly from the viewpoint of an external analyst who has to make predictions about the future success of the company.