Research on Capital Structure and Investment Value of Supermarket Industry

Abstract

This paper focuses on researching the capital structure and investment value of the supermarket industry, specifically examining the impact of epidemiological events on value investment within this sector. The objective is to explore the factors that influence capital structure decisions and their implications for investment value. The analysis employs the Weighted Average Cost of Capital (WACC) method to evaluate the relationship between capital structure and investment performance in the context of the supermarket industry. The study aims to investigate the influence of epidemiological events, such as COVID-19, on the capital structure decisions of supermarket companies and their subsequent effects on investment value. The research considers factors such as the size and maturity of the companies, risk profiles, regulatory environments, and cost of capital considerations to assess their impact on capital structure choices. By utilizing the WACC method, A study of supermarket investment value and capital structure decisions is presented in this paper. The WACC approach allows for a comprehensive evaluation of the cost of debt and equity financing, incorporating factors such as interest rates, tax implications, and market conditions.