We are now in the Summer of 2020, and you have graduated from the University of Dubai with honours.

You have recently started a new job of a Financial Analyst at the Smart Investments Enterprise.

The companys CEO has given you a task to study the relationship between the corporate capital structure

and profitability in the global capital markets.

a. Relying on the factual data and your research findings, present and discuss your observations on the relationship between the corporate capital structure and profitability in ONE of the following industries:

1. Automobile, 2. Online retail, 3. Property & construction, 4. Telecommunications, 5. Electronics.(1 point)

b. Analyze your research findings on what the finance theory says about the relationship between the corporate capital structure and profitability. Does it coincide with reality?(1 point)

c. Discuss whether the introduction of the Value-Added Tax (or VAT, as we know it) across the GCC countries would have affected the corporate WACC in the region.(1 point)

d. Critically evaluate and interpret the statement: Equity is referred to as the obligation proposition, while debt is referred to as the value proposition. (1 point)

e. Suppose you have been promoted to the post of the companys Chief Financial Officer, and the firms capital structure decisions would now be at your discretion.

Justify whether you would prefer to obtain the funds to finance the companys assets with debt or equity. Why? Discuss the consequences. (1 point)