Research on Capital Structure and Investment Value of the Communication Industry

Abstract

Whether the capital structure of the communication industry has changed in the context of the epidemic, and if so, how to determine the investment value of companies in the communication industry. Select a communication industry company to sort out financial statements, calculate the risk-free break rate, expected cost of equity capital, WACC, and other values before the outbreak of the epidemic and compare and analyze these values after the outbreak of the epidemic. This paper mainly studies the capital structure and investment value of the communication industry and the development environment of the communication industry. It also explains how the capital structure and investment value of the communications industry differ in the event of a pandemic. Finally, the numerical values of Apple Inc. during the epidemic were compared with those of Apple Inc. before the epidemic. The pandemic has boosted revenues in the communications industry to some extent, but the business risk rate in the communications industry has also increased significantly. Because most people started to work from home during the pandemic, the revenue of the communications industry increased, but the pandemic itself is uncertain, so the business risk rate of the communications industry increased.