An Analysis of Hasbro Inc. Capital Structure

Timothy Cummings

Co-Presenters: Individual Presentation

College: College of Business and Public Management

Major: BS.MANAGEMNT-GENBUS

Faculty Research Mentor: Kakolyris, Andreas  

Abstract:

The goal of this study is to determine the optimal capital structure of Hasbro Inc.. To achieve this goal, we will be analyzing the current debt to equity ratio to determine the current weighted average cost of capital for the firm. The study will then move forward to measure the unlevered beta to have a better idea of what risks may be presented by the capital structure. For some background, Hasbro was founded in 1923, going public in 1968, and operates within the toy and game industries across the world. Hasbro is comprised of 3 divisions that operate independently to serve the consumer market, digital and tabletop gaming, and entertainment licenses markets. For this study, comparisons will be based on other large-cap firms, being firms that have a market capital higher than two billion dollars. It should also be known that changes to the capital structure is a very high effort task for a firm as it requires restructuring.