Question
Write an analysis in which you address the following: Select two publicly-traded companies within the same industry and present the DuPont analysis for each of
Write an analysis in which you address the following: Select two publicly-traded companies within the same industry and present the DuPont analysis for each of these companies. Explain how the debt has served to influence the ROE DuPont performance results for each, and then describe how volatility plays a role in the debt choices in the context of this DuPont analysis. Consider each of the following capital structure theories: the tradeoff theory, the signaling theory, the debt financing to constrain the managers argument, and the pecking order hypothesis. Briefly describe each of these, and then order them in terms of which theory you believe to be most persuasive down to which you believe to be least persuasive. Form arguments defending your rankings and reference and discuss related academic studies to support your position.
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