COMPANY: Barratt Development Plc

1. By reference to the company's 5-year record (include the relevant financial statement information in the appendix of your work), give a concise description of how the company is financed, with reference to the different sources of capital, and gearing level, and why do you think the company has chosen this method of financing
2. Assess how the gearing level reflects the historic financial performance of the company and,which theoretical model explains the capital structure changes over the last 5 years best and why.

You are required to obtain a copy of the company's latest Financial Statements (Annual Reports) and refer to the company website for further details.

Given that you will be required to use 'financial ratios' you are advised to not use more than 5 ratios to support your work.