Calculate the cost of capital of the company

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Reference no: EM132312031 , Length: word count:2250

Assignments -

1) Please discuss the following case study. In doing so, explain your approach to the problem and execute your approach. Provide an answer to the case study's question with a recommendation.

Case Study: The Secure and Safe Waste Management Company specializes in handling recyclable materials as well as traditional waste removal services. It is a small but publicly traded corporation. It currently has a capital structure of $50 million in bonds which pay a 5.5% coupon, $20 million in preferred stock with a par value of $50 per share and an annual dividend of $2.75 per share. The company has common stock with a book value of $25 million. The cost of capital associated with the common stock is 12%. The marginal tax rate for the firm is 30%.

The management of the company wishes to acquire additional capital for operations maintenance purposes. The chief financial officer (CFO) suggests that another public debt offering in the amount of $45 million. He believes that because of favorable interest rates, the company could issue the bonds at par with a 4.5% coupon.

Before the Board of Directors convenes to discuss the debt IPO, the CFO wants to provide some data for the board of directors' meeting notebooks. One point of analysis is to evaluate the debt offering's impact on the company's cost of capital. To do this:

Calculate the current cost of capital of Secure and Safe on a weighted average basis.

Calculate the cost of capital of the company assuming the $45 million dollar bond issue with a 4.5% coupon is approved.

Discuss how your approached this calculation. Also describe the tax shield advantage debt capital provides.

2) Submit a written paper which is at 5-pages in length, exclusive of the reference page, double spaced in Times New Roman font which is no greater than 12 points in size. The paper should cite at least three sources independent of the textbooks.

In this paper, please discuss the following case study. In doing so, explain your approach to the problem, support your approach with references, and execute your approach. Provide an answer to the case study's question with a recommendation.

Case Study: The Great Service Cleaning and Maintenance Company requires a capital infusion of $200,000. It is currently a closely held corporation with less than 50 shareholders. Although the shareholders are not all related to each other, they all know each other and they view the business as a family business. Please refer to the financial statements available here. The financial statements should be familiar to you because you performed a basic financial analysis of the company in Unit 1 of this course.

A number of alternatives are available to the company. It can:

  • Obtain private debt financing
  • Seek out a private investor(s) who would be willing to share ownership
  • Seek out offers for a private buy-out
  • Issue public debt (corporate bonds)
  • Issue public common stock

In this paper, discuss the impact and implications of each alternative. It would be appropriate to include the topics and areas of discussion you covered in the case study in Unit 6 so long as it is applied to this specific case. Considering the size of the investment ($200,000) how does this impact the financial statements reviewed in Unit 1?

Superior papers will explain the following elements when responding to the assignment question:

  • Provide a narrative about private debt, private transfer of partial ownership, private transfer of entire ownership, public debt issuance, and public equity offering.
  • Provide a discussion of the impact of each alternative which would include issues of structure and cost of capital.
  • The narrative will discuss the impact of an infusion of capital of $200,000 on the financial statements.

3) Drawing on the readings and on your personal experience, how can HR Managers help raise the cultural intelligence of an organization. Do you think that HR bears the brunt of this task or are there other offices within an organization that should be sharing in this goal? How can Human Resources help to promote an environment that is welcoming, respectful, and inclusive?

4) Submit a paper which is about 4-pages in length, exclusive of the reference page, and double-spaced. The paper should cite sources independent of the textbooks using APA format.

You have been hired by a company to help them diversify their workforce -- your choose the type of company. Write a proposal to present to the Senior Management staff that addresses how to begin this diversification. Assume the business that has hired you is committed to training and education of people who have the talent, but may need some professional development, coaching, mentoring, etc. The CEO and Vice President for Human Resources have met with you and made it clear that diversity of all types is important, including cultural, gender and sexual orientation; they believe in inclusivity in the broadest of terms.

This company is looking for a proposal that is integrated into all key functions of the organization, including, Recruitment and Selection; Training and Development; Pay and Incentives; Performance Management and Appraisal; and anything else appropriate to the type of organization you choose. You should consider the geographic region where the company is located and the demographics of the people who live nearby. Along with proposal include recommendations for policies and procedures that need to be considered as part of this effort.

The choice of business is yours, your paper should include start with a brief description of the business and where it is located.

Assessment Criteria -

  • Description of business and geographic location is included and provides enough detail to set the stage for the rest of the proposal.
  • Paper includes a description of the overall plan for diversification that makes sense given the business itself and where it is located.
  • Paper includes proposal for recruitment and selection of employees.
  • Paper includes proposal for training and professional development.
  • Paper includes proposal for restructuring pay and incentives.
  • Paper includes proposal for performance management and appraisal.
  • Paper includes recommendations for policies and procedures that need to be added, updated or changed.
  • Writing Organization.
  • Use of Research and References.

Attachment:- Assignment Files.rar

Reference no: EM132312031

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len2312031

5/26/2019 10:41:58 PM

Need 2250 words. Assignment 1 and 3 are a page each with it's own references and in-text citations. Assignment 2 and 4 are written paper, 4 and 3 pages respectively with intro, content, analysis, and conclusion. And Grammar and turnitin report is mandatory.

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