FIN 550: Corporate Finance Milestone 4 Macroeconomics
The Chief Executive Officer (CEO) is whole-hearted inclined the financial analysis of Home Depot should merely be a by-product of an internal assessment. Others would disagree stating their opinion that an organizations capital structure and its modification can be subjective by several factors, internal or external (Mokhova and Zinecker, 2014). Internal factors involve: profitability; asset tangibility, growth opportunities, tax shields, non-debt, and firm size. These internal factors hold a substantial influence on the financing selection, which have a direct positive or negative correlation on capital structure, but can be managed by the company. Nevertheless, external factors, represented as macroeconomic factors, cannot be managed consequently playing a crucial role (Mokhova and Zinecker, 2014).