Research Paper 3: Research Paper DuPont Analysis (CLO 1, 3, 7, 8) The research s
Research Paper 3: Research Paper DuPont Analysis (CLO 1, 3, 7, 8)
The research should be based on capital budgeting and how corporations are confronted with the capital budgeting problems. Students will write an analysis in which students will select two publicly traded companies within the same industry and present the DuPont analysis for each of these companies.
Instructions
Write an analysis in which you select two publicly-traded companies within the same industry and present the DuPont analysis for each of these companies.
Your assignment should demonstrate thoughtful consideration of the ideas and concepts presented in the course by providing new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards. Be sure to adhere to the Academic Integrity Policy.
Write a five to seven page APA report not including title and abstract reference pages answering the questions below. Do not just answer the questions, but use the questions to formulate your report. Your paper should demonstrate thoughtful consideration of the ideas and concepts presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards. Be sure to adhere to University’s Academic Integrity Policy.
Questions to be answered in your report:
Write a report that outlines the topics –
Explain how the debt has served to influence the ROE DuPont performance results for each company you choose, and then describe how volatility plays a role in the debt choices in the context of this DuPont analysis. Explore the factors that influence the valuation of equity.Consider each of the following capital structure theories: the trade-off theory, the signaling theory, the debt financing to constrain the manager’s argument, and the pecking order hypothesis.Describe each of capital structure theories, 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.
Requirements of the Assignment:
All papers must follow all APA requirementsAll papers must have a reference page. The textbook is an acceptable source.Body of the paper 5 -7 pages, no more or less.Title page, abstract, and reference pages are required. However, they do not count towards any page count.Writing should reflect an understanding of the chapter’s basic concepts, thorough research, and logic and critical thinking skills.The introduction is attention getting with sufficient background information to establish the topic and a clear thesis statement.The conclusion summarizes the main points and leaves the reader with a strong comprehension of the paper’s significance and the author’s understanding.Grammatically correct – No spelling, grammar, or mechanics errors.Do not use the first person. (10% deduction if used)
Upon the completion of this module, students will be able to:
5.1 Define, describe and illustrate the decomposition of ROI and ROE (CLO 1, 2, 4, 5, 6, 7, 8).
5.2 Extend the basic analysis to show the connection of this decomposition analysis to the common-size income statement (1, 2, 4, 5, 6, 7, 8).