Preview

Capital Structure

Powerful Essays
Open Document
Open Document
1273 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Capital Structure
Capital Structure
7 July 2013

Introduction The capital structure for a company can be very important for the success of the company. Many aspects of the business must be evaluated in order to determine the appropriate capital structure. Throughout this paper, three companies will be evaluated. The three companies being evaluated are eBay (NasdaqGS: EBAY), The Clorox Company (NYSE: CLX), and Alaska Air Group Inc. (NYSE: ALK).
Company Overview eBay is a very popular company for people of all walks and from all around the world. According to the company’s website, eBay “is a global commerce platform and payments leader connecting millions of buyers and sellers. We do so through eBay, the world 's largest online marketplace, which allows users to buy and sell in nearly every country on earth; through PayPal, which enables individuals and businesses to securely, easily and quickly send and receive digital payments; and through GSI, which facilitates ecommerce, multichannel retailing and digital marketing for global enterprises” The Clorox Company has been a leader in cleaning and household supplies for many years. According to their website, “The Clorox Company manufactures and markets consumer and professional products worldwide. The company’s Cleaning segment offers laundry additives, including bleach products under the Clorox brand, and Clorox 2 stain fighter and color booster; home-care products primarily under the Clorox, Formula 409, Liquid-Plumr, Pine-Sol, S.O.S, and Tilex brands; naturally derived home care products under the Green Works brand; and cleaning and disinfecting products under the Clorox, Dispatch, Aplicare, HealthLink, and Clorox Healthcare brands. Its Household segment offers plastic bags, wraps, and containers under the Glad brand; cat litter products under the Fresh Step, Scoop Away, and Ever Clean brands; and charcoal products under the Kingsford and Match Light brands.” According to their website,



References: Ebay Inc. (2012). Investor relations. Retrieved July 6, 2013 from http://investor.ebay.com The Clorox Company (2012). Investors. Retrieved July 6, 2013 from http://investors.thecloroxcompany.com/ Alaska Air Group, Inc. (2012). Investor relations. Retrieved July 6, 2013 from http://phx.corporate-ir.net/phoenix.zhtml?c=109361&p=irol-IRHome Peavler, R. (2013). Debt and Equity Financing. Retrieved July 6, 2013 from http://bizfinance.about.com/od/generalinformatio1/a/debtequityfin.htm

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Case Study EBAY

    • 460 Words
    • 2 Pages

    eBay is one of the world's largest online marketplaces, and allows users to buy and sell in nearly every country on earth; PayPal enables individuals and businesses to securely, easily and quickly send and receive digital payments; and eBay Enterprise enables omni-channel commerce, multichannel retailing and digital marketing for global enterprises in the U.S. and internationally.…

    • 460 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    EBay’s mission is to provide a global and economic segment platform where practically anyone can trade…

    • 2066 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    The company I will talk about for this paper is eBay. eBay is the world 's online marketplace; a place for buyers and sellers to come together and trade almost anything. With more than 97 million active users globally, eBay is the world 's largest online marketplace, where practically anyone can buy and sell practically anything. Founded in 1995, eBay connects a diverse and passionate community of individual buyers and sellers, as well as small businesses. Their collective impact on ecommerce is staggering: In 2010, the total value of goods sold on eBay was $62 billion -- more than $2,000 every second. I have been interested in eBay since I got first debit card and was able to shop online. eBay’s stock is currently valued at $28.23. It has a market cap of 36.44 billion. It biggest competitor is Amazon, which they happen to come second to in competition.…

    • 1713 Words
    • 7 Pages
    Better Essays
  • Better Essays

    As a financial advisor to this business there are two options to consider for raising business capital, equity financing and debt financing. The details, advantages, and disadvantages of both options will be provided. Also information about raising capital by selecting an investment banker will be discussed. To wrap up, the historical relationships between risk and return for common stocks versus corporate bonds will be examined.…

    • 1466 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Determine a capital structure policy suitable for Du Pont in the 1980s and beyond. This paper will consider the history of the company and the turbulent times of the 1960s and 1970s, weigh the advantages and disadvantages associated with higher and lower levels of debt, and develop a strategy for the future after the merger with Conoco Inc. in 1983.…

    • 1320 Words
    • 6 Pages
    Good Essays
  • Best Essays

    Ebay Company Analysis

    • 4028 Words
    • 17 Pages

    eBay Incorporated, a US company headquartered in San Jose, California, provides online marketplaces for the sale of goods and services, online payments services, and online communication offerings to individuals and business in the United States and internationally. With more than 90 million active users globally, their collective impact on e-commerce is staggering: In 2009, the total worth of goods sold on eBay was $60 billion — $2,000 every second. The business strategy of eBay is exemplified in the company’s mission statement, “eBay’s mission is to provide a global trading platform where practically anyone can trade practically anything”.…

    • 4028 Words
    • 17 Pages
    Best Essays
  • Powerful Essays

    Ebay Case Analysis

    • 9313 Words
    • 38 Pages

    Submitted by: Atika Imtiaz (7184),Hira Sarwar (7208), Khadija Tahir (7554), M. Waqas Moghul (7727), Natasha Akber (7546),Shayan Rasool(8093) Submitted to: Mr. AbdulQadir Molvi…

    • 9313 Words
    • 38 Pages
    Powerful Essays
  • Good Essays

    Ebay History

    • 3450 Words
    • 14 Pages

    Millions of buyers and sellers have made eBay Inc. the world's largest and most popular Internet site for individuals and businesses to exchange goods. By 1999 eBay had 5.6 million registered users and listed over 3.1 million items for sale; by 2004 there were an estimated 65 million registered users from 150 countries, 971 million items for sale, and gross merchandise sales hit $15billion. eBay owns local sites in 19 countries, has stakes in another eight foreign nations, and provides users with its own online pay service, PayPal Inc. As eBay's revenues continue to grow, the sky seems the limit despite competition from Yahoo!, Amazon.com, and an ever increasing number of imitators.…

    • 3450 Words
    • 14 Pages
    Good Essays
  • Powerful Essays

    Ebay

    • 1334 Words
    • 6 Pages

    eBay has grown from an online auction service to the premier global commerce platform and payments leader through a focused acquisition strategy to enable merchants to more easily integrate online and offline commerce efforts. By covering the wide array of e-commerce opportunities and driving more efficient merchant and consumer interactions, eBay is positioned well to compete with Google, Amazon and Overstock. The eBay subsidiary PayPal enables individuals and businesses to securely, easily and quickly send and receive online payments and is a cash cow for eBay. PayPal is the industry leading payment service and is utilized by eBay competitors Amazon, Google and Overstock. Finally, the X.commerce platform brings together the technology assets and developer communities of eBay, PayPal and Magento as an ecommerce storefront platform enabling open source commerce from local to global markets.…

    • 1334 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    Ebay

    • 818 Words
    • 4 Pages

    eBay.com, “the world’s online marketplace”, is an online auction and shopping website in which people and business buy and sell a wide variety of goods and services worldwide. It is managed by eBay Inc, which is founded in 1995 by Pierre Omidyar. eBay’ mission was to provide a robust trading platform where practically anyone could trade anything. It was recognized as the largest and most popular person-to-person trading community on the Internet. (eBay Case, 2006) eBay posted US $8.7 billion in revenue with a net income at $2.4 billion in 2009. eBay is experiencing a 15% year-over-year increase. eBay’s marketplaces also benefit from a noticeable growth in its international business market, which accounts for around 60% of its market revenue in the 4th quarter of 2009. The marketplaces success comes from the strong growth of its fixed-priced format, the continuing success of its highest rated sellers, and double-digit growth in sold items. (eBay 2009 Financial Report, 2010) Whitman purposed that eBay community of users was the foundation of the company’s business model. (eBay Case, 2006) Customer service is substantial for e-commence business to survive and develop. The customer support organization in eBay was made up of two major units: general support, trust and safety. Most of the customer contacts were handled by the general support unit, and approximately 94% of customer service volume was email-based. Also, live chat and phone inquiries were growing. (eBay Case, 2006) To meet the inquiries of its customer base’s growth, eBay first hired remote contractors to respond customers’ emails. Then, eBay deployed Kana technology to improve its efficiency of customer services and to raise the customer satisfactions. However, those initiatives still could not keep up with the demand of…

    • 818 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Ebay Swot Analysis

    • 412 Words
    • 2 Pages

    | * Leading global brand for online auctions the brand name is more and more recognized around the world (brand recognition). EBay is expanding its international presence. Consequence : growth of profit * Ability to attract buyers * Volume of transactions * Selection of goods * Customer service and security * PayPal: PayPal has helped eBay to increase satisfaction among customers thanks to the services it offers. The share of PayPal in eBay’s turnover represents 36 percent. * Acquisitions provide new business strategy opportunities. eBay has bought several firms (Skype, PayPal) in order to increase the number of services it offers to its customers Growth of profit…

    • 412 Words
    • 2 Pages
    Good Essays
  • Best Essays

    Ebay in China

    • 2703 Words
    • 11 Pages

    eBay is an online provider of marketplaces for the sale of goods and services. It also provides commerce, platforms, online payments services and online communications. It offers products and service to individuals and businesses. Established in 1995, the company operates in the US and other international markets with employs 16,400 people. eBay keeps its leadership position in the new industry – C2C (consumer to consumer) (Ou and Banerjee, 2005) market with the recorded revenue of $87 billion (datamonitor). It owns lots of websites including the auction websites and online payment websites under its brand name across the world.…

    • 2703 Words
    • 11 Pages
    Best Essays
  • Good Essays

    Ebay & Paypal

    • 286 Words
    • 2 Pages

    With more than 94 million active users globally, eBay is the world's largest online marketplace, where practically anyone can buy and sell practically anything. Founded in 1995, eBay connects a diverse and passionate community of individual buyers and sellers, as well as small businesses. Their collective impact on e-commerce is staggering: In 2010, the total worth of goods sold on eBay was $62 billion -- more than $2,000 every second. For the latest stories about eBay, including recent financial…

    • 286 Words
    • 2 Pages
    Good Essays
  • Better Essays

    Notes to Consolidated Financial Statements (continued) complaints, which assert varying claims, including breach of contract, and violations of ERISA, state and federal law, all allege that the prices BNY Mellon charged and reported for standing instruction foreign exchange transactions executed in connection with custody services provided by BNY Mellon were improper. In addition, BNY Mellon has been named as a nominal defendant in several derivative lawsuits filed on various dates in 2011 and 2012 in New York state court and federal district court in New York. German Broker-Dealer Litigation As previously disclosed, on various dates from 2004 to 2011, BNY Mellon subsidiary Pershing LLC (“Pershing”) was named as a defendant in more than 100 lawsuits filed in Germany by plaintiffs who are investors with accounts at German broker-dealers. The plaintiffs allege that Pershing, which had a contractual relationship with the broker-dealers through which the broker-dealers executed options transactions on behalf of the broker-dealers’ clients, should be held liable for the tortious acts of the broker-dealers. Plaintiffs seek to recover their investment losses, interest, and statutory attorney’s fees and costs. On March 9, 2010, the 11th Senate of the German Federal Supreme Court ruled in the plaintiff’s favor in one of these cases, and held Pershing liable for a German broker-dealer’s tortious acts. In subsequent cases, the Supreme Court continued to rule in the plaintiffs’ favor. In December 2011, Pershing settled the majority of the cases. Lyondell Litigation As previously disclosed, in an action filed in New York State Supreme Court for New York County, on Sept. 14, 2010, plaintiffs as holders of debt issued by Basell AF in 2005 allege that The Bank of New York Mellon, as indenture trustee, breached its contractual and fiduciary obligations by executing an intercreditor agreement in 2007 in connection with Basell’s acquisition of Lyondell Chemical Company. Plaintiffs…

    • 3475 Words
    • 14 Pages
    Better Essays
  • Powerful Essays

    Ebay in Asia

    • 2504 Words
    • 11 Pages

    eBay is an online auction service whose business model is ideally suited to the Web. EBay stores no inventory and ships no products. Instead, it derives its revenue from the movement of information, an ideal task for the Internet. EBay has taken its model to numerous foreign markets and been successful, particularly in England, France, and Germany, however, eBay has failed to achieve the same success in the Asian markets.…

    • 2504 Words
    • 11 Pages
    Powerful Essays