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Capital Structure within Ford

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Capital Structure within Ford
Table of Contents

Abstract

Overview of Ford Motor Company

Ford Motor Company Capital Structure

Business and Financial Risks
The Modigliani and Miller Theory of Capital Structure and Criticisms
Optimal Capital Structure at Ford
References

Abstract

The purpose of this paper is to analyze Ford Motor Company’s capital structure to understand the financial risks and companies financial make up. The research paper will also discuss the Modigliani and Miller capital structure theory including common criticisms. To understand Fords profitability we will take a close look at their financial ratios including stock rates and future analysis of the company’s assets. Research was done by reading news articles, online periodicals and stock references including Fords own annual reports and website. In conclusions we will understand the optimal structure for Ford Motor Company and what should be done to ensure continued success within an ever changing industry.

Overview of Ford Motor Company
Henry Ford founded Ford Motor Company on June 16th, 1903 with several partners in Dearborn, Michigan. During the early years the company produced several vehicles ranging from the Model A in 1903 to The K, in 1907. The most notable of the Ford motor company vehicles is the Model T in 1909. Ford built over 18,000 Model T’s in 1909, by 1912 they were producing over 170,000 which required a move to a larger plant. By this time Ford Motor Company was international and within the next few decades it would expand overseas to include Austria, Argentina, Ireland and Australia to name a few. Henry Ford was in control of the company until his wife and daughter demanded that he give over control of the company to his grandson in 1943. Ford died in 1947, attracting over 7 million viewers at a national level. Ford Motor Company would go on to be the largest and most profitable companies in the world. They would



References: axis, M. (2014). Ford Debt to Equity. Retrieved from macro axis: http://www.macroaxis.com/invest/ratio/F--Debt-to-Equity Ford. (2012). 2012 Annual Report. Retrieved from Corporate.ford.com: http://corporate.ford.com/doc/ar2012-2012%20Annual%20Report.pdf Taylor III, A. (2009). Fixing Up FORD. (Cover story). Fortune, 159(11), 44-52. Retrieved from EBSCOhost. Yahoo. (2013, Feb). Form 10-K for FORD MOTOR CO. Retrieved from Yahoo! Finance: http://biz.yahoo.com/e/130219/f10-k.html

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