Title: "Optimizing Capital Structure and Financial Performance"

$$

OBJECTIVES:

$$ The objective of this project is to analyze and evaluate the capital

structure of a publicly traded company and its impact on financial

performance. Students will assess various financial metrics and ratios

to understand how different capital structure decisions affect the

company's profitability, risk, and shareholder value.

$$

$$ Additionally, this project will allow students to apply theoretical

concepts of financial management to real$-$world scenarios, enhancing

their analytical skills and decision$-$making abilities.

$$

PROJECT REQUIREMENTS:

$$

$1.$ Company Selection:

a$)$ Use Knutsford Express Services Limited that is listed on the Junior Market.

$2.$Data Collection:

a$)$ Gather financial statements for the last $3$ years, including $2024,$ and any additional relevant information from the company's annual reports, Stock Exchange filings, and$/$or other financial databases.

$3.$ Capital Structure Analysis:

a$)$ Calculate the company's current capital structure components, including debt, equity, and preferred stock.

b$)$ Analyze the historical trends in the company's capital structure over the past three $(3)$ years.

c$)$ Compare the company's capital structure with industry benchmarks $($if applicable$)$ and peers.

$4.$ Financial Performance Evaluation:

a$)$ Calculate key financial ratios, such as debt$-$to$-$equity ratio, interest coverage ratio, return on equity $($ROE$),$ and return on assets $($ROA$).$

b$)$ Assess the company's financial performance and profitability trends over the same period.

$5.$ Impact Assessment:

a$)$ Discuss the potential impact of changes in the company's capital structure on its cost of capital, risk profile, and overall financial health.

b$)$ Analyze the implications of different capital structure strategies $($e$.$g$.,$ debt financing vs$.$ equity financing$)$ on shareholder value and firm value.

$6.$ Recommendations:

a$)$ Based on the analysis, provide recommendations to the company's management regarding potential adjustments to the capital structure to optimize financial performance and maximize shareholder wealth.

b$)$ Justify your recommendations with supporting evidence and

financial analysis.

$$