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Using 10 years of financial data for Metcash (MTS) explain which of the competing theories of capital structure covered in the unit best explains the

  • Using 10 years of financial data for Metcash (MTS) explain which of the competing theories of capital structure covered in the unit best explains the firms observed debt and equity levels.
  • Explain how the observed pattern of debt to equity ratios would influence the estimation of the cost of capital for Metcash.
  • Recommend, with justification, one or more capital structure altering transactions that the firm could undertake to reduce (optimise) it's cost of capital going forward.

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