Hello, I need help on the following questions related to JetBlue Airways (JBLU) with yahoo finance data on JBLU.

Questions are:

Capital Structure Choices

a.What are the different kinds or types of financing that this company has used to raise funds? Where do they fall in the continuum between debt and equity?

b.How large, in qualitative or quantitative terms, are the advantages to this company from using debt?

c.How large, in qualitative or quantitative terms, are the disadvantages to this company from using debt?

d.What is the risk profile of your company? How much overall risk is in this firm? Where is the risk coming from (market, firm, industry, currency)? How is the risk profile changing?

Optimal Capital Structure

a.Based upon the cost of capital approach, what is the optimal debt ratio for your firm?

b.Bringing in reasonable constraints into the decision process, what would your recommended debt ratio be for this firm?

c.Does your firm have too much or too little debt relative to the industry/sector?

Dividend Policy

a.How has this company returned cash to its owners? Has it paid dividends or bought back stock?

b.How much cash has the firm accumulated over time?

c.Given this firm’s characteristics today, how would you recommend that they return cash to stockholders (assuming that they have excess cash)?

d.If the firm has a dividend policy and current cash balance, would you push the firm to change its dividend policy?

e.How does the firm’s dividend policy company to those of its industry/sector?

Valuation

a.What is your estimate of the value of equity in this firm? How does this compare to the market value?

b.What is the “key variable” (risk, growth, leverage, profit margins, etc.) driving this value?

c.If you were made CEO, what changes would you make to maximize shareholder value?

d.What recommendations would you give to allocate free cash flow?

Math needs to be included for the cash flows and graphs/data from yahoo finance were appropriate. Thanks ! 🙂