In April 2020, Flight Centre has secured a total of $700 million through a mix of capital raising and new debt facilities to bolster its balance sheet and liquidity position.

A. Compute debt-to-equity, financial leverage (net debt/market capitalisation of equity, earnings per share, return on equity for years 2015-2019. Comment on the likely causes of significant changes in calculated metrics. How does Flight Centre compare to the industry? Comment.

B. Calculate the weighted average cost of capital (WACC) of Flight Centre for fiscal year 2019. Why might Flight Centre want to determine their WACC?

C. Identify and analyse the key issues facing Flight Centre in seeking new capital and evaluate the impact of capital raisings on its capital structure, risk profile and per-share price.

D. In the light of measures obtained in a above, write report on the strengths and weaknesses of Flight Centre's capital structure in the period 2015-2019.