Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Provide data over the company Integrated Micro - electronics ( IMI ) using WSJ , if you do not want to answer the questions like

Provide data over the company Integrated Micro-electronics (IMI) using WSJ, if you do not want to answer the questions like the previous expert I will downvote.
1.Capital structure analysis
1.Calculate the percentage of each form of capital the company employed for each of the last 3 years of financial data.
1. Debt %= Total Debt / Total Capital
2. Common equity %= Total Common equity / Total Capital
3, Preferred equity %= Preferred equity / Total Capital
Total Capital = Total of debt + total of common equity + Total of preferred; if there is no preferred (this is common), then Total preferred =0 in the calculation.
[NOTE: companies have different accounting firms auditing their financial statements and therefore some of the "names" of the balance sheet items may be slightly different. A good example of this is short-term debt. Sometimes it is listed as current portion of long-term debt.]
1.Compare the capital structure to the results of the DuPont ROE (Milestone 02). Comment on any observations you make about how the firm raises and uses capital and its effects on shareholder wealth (ROE).
2.Sustainable growth rate (SGR)
1. SGR = ROE \times (1- payout ratio).
2. The key with this ratio is to keep equity the same as the base year because (1- payout ratio) represents retained earnings. The resulting rate assumes the growth rate that the company can sustain without issuing new shares of stock; only reinvesting the portion of earnings not paid in dividends back into the company.
3.Calculate the sustainable growth rate (the rate that sales could grow without additional funds) for the latest three years. Again, you will need four years of financial information as you would need the stockholders' equity from 4 years prior. The information can be obtained from the company's annual report.
4, In what life cycle stage is your company? Cash and capital needs vary from stage to stage in the life of an organization. Comment on your company's stage relative to other competitors in the industry.
Use this information or provide more information about the company:
it will be provided from 2022 to 2020(2022 starting from left)
ST Debt & Current Portion LT Debt =11,300,8,974,10,392
Common Equity (Total)=21,173,20,769,21,639
Common Equity / Total Assets =34.34%,36.18%,39.64%
Long-Term Debt =8,930,8,795,2,874
Short Term Debt =10,736,8,453,9,916
Total Shareholders' Equity =21,17320,76921,639
Retained Earnings =10,85610,27810,363

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Markets And Institutions

Authors: Jeff Madura

13th Edition

0357130790, 978-0357130797

More Books

Students also viewed these Finance questions