Capital Structure

TABLE OF CONTENTS

I. Executive Summary .

PART 1- BACKGROUND

I. The Economy of US

II. The Manufactured houses Industry

A. Industry Characteristics

B. Sales Characteristics

C. Sources and Uses of Funds (Internal and external funding analysis)

D. Causes of Changes in Industry Prospects

III. Cavco Industries Inc.

A. Background and History

B. Organization of Management .

C. Products

D. Market and Distribution Channels

E. Competition (list major 3 competitors and the leading corp in the industry)

F. Production Facilities

G. Promotional Activities.

H. Acquisitions.

I. Historical Financial Statements (3 years)

J. Notes to Consolidated Financial Statements

K. Trends in Growth and Variability

L. Ratio Analysis ( for the past 3 years , and compared with the industry average)

PART 2 - Analysis

I. Initial Pro Forma Financial Statements.(2 years prediction).

II . Determination of the Cost of Debt

III. Determination of the Cost of Equity

A. Capital Assets Pricing Model.

B. Expected Rate of Return on a Security. .

C. Risk-Free Rate.

D. Beta Coefficient.

E. Expected Return on the Market. .

F. Market Risk Premiurn . . .

G. Calculation of Cost of Capital.

IV. Determination of the Weighted Cost of Capital

A. Per Share Market Value of the Firm. . .

B. Market Value of the firm's Equity. .

C. Market Value of the Firm's Debt. .

D. Calculation of Cost of Capital

. V. Investment Decision

A. Discounted Cash flow Assumptions.

B. Internal Rate of Return. .

C. Net Present Value. .

D. Cash inflow...