Analysis of companys (Woolworths Group Limited) capital structure policies (maximum 550 words) (6+6+15+3= 30 marks) Describe the capital structure considering the following criteria: 5.2.1 Why is capital structure analysis useful for a company? (Discuss optimal capital structure, firm value, why higher EPS does not always support for the optimal capital structure).

5.2.2 What does the capital structure theory say about a company's capital structure?

5.2.3 Assess your subject companys capital structure over five-year period (i.e., 2017 2021) using the data collected from five years annual reports.

A. Use Debt ratios, Debt equity ratios and Times interest earned ratios to assess the companys current performance against its past performance ( i.e., trend analysis) and its current performance against two competitors (i.e., industry analysis). Please use 5year financial data from 2017 to 2021 (please conduct performance analysis over the 20172021 period). You are expected to calculate for these ratios yourself rather than picking these from financial databases that may have a different definition of the ratios.

b. Based on the findings found in a, what is your opinion about the company's capital structure, specifically the degree of financial leverage. (HINT: Make an assessment about the companys capital structure based on these solvency ratios).