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Capital structure is the mix of debt and equity used to finance a firm's assets. Information on a firm's financial statements, but the value of

Capital structure is the mix of debt and equity used to finance a firm's assets. Information on a firm's financial statements, but the value of the debt and the value of the equity is based on historic costs. As a result, the book value of shareholder's equity is typically much smaller than the market value. Similarly, the value of a firm's bonds are carried on its balance sheet at the original valuation of the bonds, but market values may change over time as market interest rates increase or decrease. The book value of liabilities, though, tends to be much closer than the market value of liabilities. For this discussion post assume that the book value of debt is equal to the market value of debt.

Pick a company of your choice from a Technology industry. Briefly describe what the company does and what its products are and then look for information (financial statements, stock price etc.) on finance.yahoo.com and complete the yellow cells in the excel template below. Mainly you need to calculate both the market and book value of short-tern debt, long-term debt and shareholder's equity. (remember that for the debt items use the same value for book and market). Then describe the company's capital structure and add any comments you might have.

i Chose AAPL as my company to analyze and i can find the book values easy and the market values for the debt but not the stock holders equity

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Company Name Book Value of: Short-term Debt Long Term Debt Shareholders Equity Total Capital Debt/Equity Ratio % STD % LTD % Equity $0 $0 Market Value of: Short-term Debt Long Term Debt Shareholders Equity Total Capital Debt/Equity Ratio % STD % LTD % Equity Company Name Book Value of: Short-term Debt Long Term Debt Shareholders Equity Total Capital Debt/Equity Ratio % STD % LTD % Equity $0 $0 Market Value of: Short-term Debt Long Term Debt Shareholders Equity Total Capital Debt/Equity Ratio % STD % LTD % Equity

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