Write a report on evaluation of the models and concepts proposed outlining their limitations and merits.

The report should contain critical evaluation of the models and concepts proposed outlining their limitations and merits. The report should be 3000 words.

You are the financial manager of North plc, a recognized manufacturing company, which has divisions in a number of countries and is considering expansion through working or acquiring with other companies. This can involve increasing, substantially, the amount of debt in the company.

You have decided to try and enhance the understanding of the Board of Directors of some relevant key areas of financial management.

Question should be decribed in report:

1. The importance of a balanced capital structure and the problems which are associated with high levels of gearing.

2: The reasons for corporate restructuring involving mergers and takeovers and evaluate the various methods by which such restructuring may be financed.