Discuss the capital structure of Southwest Airlines.

1. Outline the most recent year's debt, equity, and total capital to show the overall capital structure of the corporation.
 
2. Articulate the corporation's dividend policy and what impact it has on the investors.
 
3. Analyze the relationship between capital structure, cost of capital, and risk, using examples from your chosen organization.
 
4. Explain how the relationship between capital structure, cost of capital, and risk can help inform decision making and maximize corporate value.

 
1. Valuation: Focus on calculating current value, outlining assumptions, and estimating the future value of the corporation through forecasting the cash flows.
   1. Calculate the current market value of equity for Southwest airlines, using the three-year history and explain what it means for the corporation.
   2. Outline any assumptions made in calculating the current value and estimating the future value of Southwest Airlines, explaining why they were made and why they are important. (Assumptions can include growth rates, margins, trends, etc.)
   3. Estimate the current value of Southwest Airlines by forecasting the cash flows over five years using the provided Excel template, and explain your findings. Calculate EVA, NPV, IRR and MIRR.

Please add sources for a thorough explanation for understanding. Thank you.

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