Question: . Capital Structure on uber a. From the balance sheet find the most recent two years total debt and total equity. Compute total debt to

. Capital Structure on uber

a. From the balance sheet find the most recent two years total debt and total equity. Compute total debt to total capital ratio (in percentage). What percentage of its operations is financed by debt? Draw a pie chart in excel for both years separately and show the equity and debt percentages in total capital. Comment on the companys capital structure. Compute it also for the previous year and then compare. Did the company use more debt this year or less compared to the previous year? Discuss.

b. Compare the debt-to-equity ratio against industry averages and/or two other similar companies (Hint: Find two competitors for your company. They should be operating in the same sector and preferably have similar asset size. Then compare debt-to-equity ratio of your company with those companies debt-to-equity ratios. To find industry averages you may search on google. If you cannot find industry averages then do the comparison using only competitor information).

c. Discuss the capital structure of the company by comparing Static Theory and Pecking Order Theory.

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