TY - BOOK AU - Keith Anne Andres, Ma. Victoria Maja Buenconsejo,Siegfried Dela Cruz, Christine Mae Heje, Joyce Krisneza Lopez, NOel Christopher Osano, Phoebe Rose Saquing, Anthony Tarala, Marco Paolo Turla, Carla Cay Versola and Mary Joyce Zulueta. AU - ED - ED - ED - ED - SN - 2 PY - 2015///46 CY - PB - KW - KW - 2 KW - 0 KW - 6 KW - 20 N1 - Financial Plan: (BSBA major in Finance and Treasury Management) - Pamantasan ng Lungsod ng Maynila, 2015; 5 N2 - EXECUTIVE SUMMARY: Ayala Land is the real estate arm of Ayala Corporation. Ayala Land was spun-off by Ayala Corporation in 1988 to enhance management focus on Ayala Corporation's existing real state business and to highlight the value of assets, management and capital structure of the real estate business. The SEC issued Ayala Land its certificate of incorporation on June 30, 1988. The Ayala Land shares were offered to the public in an initial public offering (IPO) of primary and secondary shares in 1991 and subsequently listed on the Makati and Manila Stock Exchanges (predecessors of the PSE). Ayala Land in the largest real estate conglomerate in the Philippines engaged principally in the planning, development, subdivision and marketing of large-scale communities having a mix of residential, commercial, leisure and other uses. Its principal businesses include planning and development of mixed0use properties, particularly, the subdivision and sale of high-end, middle-income and affordable residential lots and housing units, leisure community developments, commercial lots and the development and leasing of retail space and land in planned communities. Ayala Land also build and sells residential condominium and office buildings, and develops industrial and business parks. Ayala Land, through its subsidiaries, also owns hotels eco-tourism resorts and movie theaters, and provides property management and construction services to its own projects and to third parties for industrial buildings and government infrastructure projects. The company's residential products are distributed to a wide range of clients through various sales groups. Ayala Land established a wholly-owned subsidiary, Ayala Land Sales, Inc. (:ALSI), which exclusively markets and sells high-end properties and condominium projects developed by Ayala Land under the brand Ayala Land Premier. Separate sales groups have also been formed for certain subsidiaries which cater to different market segments under Alveo Land Corp. (Alveo) (middle-income housing), Avida Land Land Corp. (:Avida) (affordable housing), Amaia Land Corp. (Amaia) (economic housing), and BellaVita Land Corp. (BellaVita) (Socialized housing). The complement these sales groups, Alaya Land and its subsidiaries also tap external brokers. Ayala Land International Sales, Inc. (ALISI), created in March 2005, leads the marketing, sales and channel development activities and marketing initiatives of the company's residential brands abroad. ALISI also signed up marketing partners in various jurisdictions. Avida has a representative office in Abu Dhabi, Ayala Land International Marketing, Inc., a subsidiary of ALISI, has an office in San Francisco and Avida Sales Corp. has established Ayala Land International Marketing, Ltd. And Ayala Land International Marketing, SRL for its offices in London and Italy, respectively. Upon evaluating and analysing the entity, the analysts had found that Ayala Land, Inc. is not maximizing the use of its financial leverage. Specifically, it has the following problems: (1) There is a low return on equity (ROE); (2) The entity is conservative in its financing strategy as it is compared to the real state industry; and (3) The weighted average cost of capital exceeds the return on assets (ROA). The analysts recommend the optimal capital structure action plan. This will give Ayala Land Inc. to maximize their financial leverage. So thus, increasing their profitability and maximizing firms value ER -