Look at the following company: Monster Beverage Corporation (NasdaqGS:MNST) and suggest a debt-to-capital ratio for iT
The 5-year beta of this company is 1.23, according to NetAdvantage. This company has zero debt, which is unusual compared to other comparable firms in the industry. This may or may not be optimal, so you should not try to skew your recommendation toward zero unless you’re able to justify this fully.
Read chapters 15 and 16 and my slides, and look at http://webpage.pace.edu/pviswanath/notes/corpfin/capstruc.html#crosssecvart. Then write up a report, explaining – based at the very least on the factors in this table on my website – what the debt-to-capital ratio should be
write-up of your results consisting of no more than two pages, single-spaced (including any tables you may want to put in)
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