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    Consider Three Companies: General Dynamics, Sprint, and Dell

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    Consider three companies: General Dynamics, Sprint, and Dell. Reflect on the nature of the business of these three companies. You are recommended to also get to the web site of one company in each of these categories. You might also check what the beta of each of these companies is.

    Based on the readings of the Module, and upon reviewing the nature of the operations of the companies including the nature of their customers and products, what would you recommend should the capital structure (total liabilities or debt and equity proportions) be for each of the three companies? Note that you are not asked to provide specific numbers, just 'low debt ratio', 'medium debt ratio' or 'high debt ratio'. (Do not quote the actual company's capital structure or their debt-to-equity ratios as per their balance sheet).

    Please explain your recommendations for each of these three companies. Consider the nature of their business, the riskiness of the company, and the advantages and disadvantages of debt over equity financing in your answers.

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    Solution Preview

    Consider three companies: General Dynamics, Sprint, and Dell. Reflect on the nature of the business of these three companies. You are recommended to also get to the web site of one company in each of these categories. You might also check what the beta of each of these companies is.

    Based on the readings of the Module, and upon reviewing the nature of the operations of the companies including the nature of their customers and products, what would you recommend should the capital structure (total liabilities or debt and equity proportions) be for each of the three companies? Note that you are not asked to provide specific numbers, just 'low debt ratio', 'medium debt ratio' or 'high debt ratio'. (Do not quote the actual company's capital structure or their debt-to-equity ratios as per their balance sheet.)

    Write a five page paper explaining your recommendations for each of these three companies. Consider the nature of their business, the riskiness of the company, and the advantages and disadvantages of debt over equity financing in your answers.
    General Dynamics is a market leader in business aviation; land and expeditionary combat vehicles and systems, armaments, and munitions; shipbuilding and marine systems; and mission-critical information systems and technologies (General Dynamics, 2010). The company employs approximately 91,700 people worldwide.
    General Dynamics has four main business segments. Aerospace designs, develops, manufacturers and services a comprehensive offering of advanced business-jet aircraft. Combat Systems is a global leader in producing, supporting and sustaining land and expeditionary combat systems for the U.S. military and its allies. Marine Systems designs, builds and supports submarines and a variety of surface ships for the U.S. Navy and commercial customers. The Information Systems and Technology group offers a breadth and depth of technology and service capabilities that support a wide range of government and commercial needs, including systems integration expertise; hardware and ...

    Solution Summary

    The solution reflects on the nature of three businesses, General Dynamics, Sprint and Dell, including their customers and products

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