Industrial Economics

Industrial Economics
The cost of capital varies greatly across industries. What may be the contributing factors to this variation? In this project, your team decides to analyze in depth one particular industry that you are fascinated with. In particular, you and your partners are interested in the following questions:
• 1. Are there any important corporate restructurings, in the form of Mergers and Acquisitions, in the past 5 years in this industry? How does it influence the industry structure?
• 2. What is the average cost of capital for this industry? How does it compare with the market average? If there’s any difference, what is the reason?
• 3. How does the profitability and leverage of major companies in this industry vary in the past 5 years?
• 4. How do you evaluate the industry’s future prospect in the next decade?