Objective: Analyze your company’s most recent Annual Report to
draw conclusions about (a) components of equity and (b) use of debt
vs equity for financing.
Company Name: Williams-Sonoma, Inc.
Analyze Equity:1. Compare the amounts of Contributed Capital vs
Earned Capital.
2. What are the components of contributed capital? Does the
company issue preferred orcommon stock? How many shares are
outstanding? What is the amount of par vs Add’l Paid- In
capital?
3. Did the company pay dividends? If so, how much? Why do
companies choose to pay dividends?
4. What is the company’s EPS?
5. Did the company repurchase any stock (eg Treasury Stock). If
so, how much? Why might a company choose to buy back its own
stock?
II. Debt vs Equity Financing:
1. Compare the company’s use of debt vs equity for financing.
Provide a brief analysis that includes total dollar amounts for
each and draws conclusions about whether the companyprefers owner
vs non owner financing.
2. What are the pros vs cons of debt vs equity
financing?
