Hello, I really need help with this project, all the questions below correspond to FORD company

Part 3 Capital Structure Analysis 3A : Current Financing Choices

3. Framework: a. Ratio Analysis 1) Calculate the leverage ratios b. Breakdown of debt and equity 1) How much of value can be attributed to debt and how much to equity? i. What is market value of equity? ii. Calculate market value of debt. c. Trade off on debt versus equity: 1) Calculate the firms effective tax rate. Compare this rate to the other firms and the industry. 2) Does the firm have other tax deductions, such as depreciation, which can be used to reduce its tax bite? 3) Calculate the firms Free Cash Flow to the Firm (FCFF) & Free Cash Flow to Equity (FCFE). Are the free cash flows numbers high relative to the industry? Examine multipliers such as EBITDA/Price ratio. 4) Does the firm have positive NPV investments? How much is reinvested back into long-term assets? 5) Are managers responsive to shareholders, or is debt needed to reduce agency costs? 6) Examine variability of sales, earnings, and cash flows. Calculate interest coverage ratios. Can the firm afford to use debt? 7) Can bond holders monitor shareholders?

3B: Moving to optimal capital structure

3. Framework a. Cost of capital approach: i. What is the firms current cost of capital? ii. Explain what happens to value as the cost of capital is changed? iii. At what level of debt is the cost of capital minimized and firm value maximized? b. Reasonable constraints: i. What bond rating does the firm have? What will be the bond rating at its optimal debt level? ii. How volatile is operating income? c. Immediacy question: i. Is the firm a takeover target? ii. Is the firm in danger of bankruptcy? d. Altering the financing mix: i. What type of projects does the firm have? Will the projects have excess returns? ii. What type of shareholders does the firm have? e. Financing type: i. How sensitive is the firms value and operating income to macroeconomic variables? ii. What does that suggest about the types of securities the firm should use?