Objective: Analyze Lowe$$s most recent Annual Report to draw conclusions about $($a$)$ components of equity and $($b$)$ use of debt vs equity for financing.

I. Analyze Equity:

$1.$ Compare the amounts of Contributed Capital vs Earned Capital. $(20$ points$)$

$2.$ What are the components of contributed capital? Does the company issue preferred or common stock? How many shares are outstanding? What is the amount of par vs Add$$l Paid$-$ In capital? $(25$ points$)$

$3.$ Did the company pay dividends? If so$,$ how much? Why do companies choose to pay dividends? $(10$ points$)$

$4.$ What is the company$$s EPS? $(5$ points$)$

$5.$ Did the company repurchase any stock $($eg Treasury Stock$).$ If so$,$ how much? Why might a company choose to buy back its own stock? $(10$ points$)$

II$.$ Debt vs Equity Financing:

$1.$ Compare the company$$s use of debt vs equity for financing. Provide a brief analysis that includes total dollar amounts for each and draws conclusions about whether the company prefers owner vs non owner financing. $(20$ points$)$

$2.$ What are the pros vs cons of debt vs equity financing? $(10$ points$)$