Reference no: EM131446981
Assignment
Purpose of Assignment
Students should understand corporate risk and be able to use the financial models learned in the class to evaluate and calculate a company's weighted average cost of capital and use the analysis to make company investment decisions.
About Your Signature Assignment
This signature assignment is designed to align with specific program student learning outcome(s) in your program. Program Student Learning Outcomes are broad statements that describe what students should know and be able to do upon completion of their degree. The signature assignments may be graded with an automated rubric that allows the University to collect data that can be aggregated across a location or college/school and used for program improvements.
Assignment Steps
Resources: Tutorial help on Excel and Word functions can be found on the Microsoft Office website. There are also additional tutorials via the web that offer support for office products.
Scenario: Wilson Corporation (not real) has a targeted capital structure of 40% long term debt and 60% common stock. The debt is yielding 6% and the corporate tax rate is 35%. The common stock is trading at $50 per share and next year's dividend is $2.50 per share that is growing by 4% per year.
Prepare a minimum 700-word analysis including the following:
• Calculate the company's weighted average cost of capital. Use the dividend discount model. Show calculations in Microsoft Word.
• The company's CEO has stated if the company increases the amount of long term debt so the capital structure will be 60% debt and 40% equity, this will lower its WACC. Explain and defend why you agree or disagree. Report how would you advise the CEO.
Format your paper consistent with APA guidelines.
|
After which the gold would be completely mined
: Seth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota. Dan Dority, the company’s geologist, has just finished his analysis of the mine site. He has estimated that the mine would be productive for eight years, a..
|
|
Designing a secure online data store
: CKDF140 PROJECT Designing a secure online data store - Risk analysis: which consists of asset evaluations, threat modeling, and vulnerability analysis and Security requirement specification.
|
|
Why did they feel the need to devote
: Now that you have read most of Wannsee Conference, what was the Nazi's main motivation for implementing the Final Solution? In other words, WHY did they feel the need to devote so much in the way of resources and manpower to this endeavor?
|
|
Shortage of staff in the labor market
: What are the possibilities in this scenario? Does it matter that this employee is temporary? Does it matter that there is a severe shortage of staff in the labor market with this skill set? Does it matter that you see no evidence of anger in this ..
|
|
Determine the companys weighted average cost of capital
: Calculate the company's weighted average cost of capital. Use the dividend discount model. Show calculations in Microsoft Word.
|
|
Define the risk management process
: Write a 1,050- to 1,750-word paper using the Risk Identification Scenario. Define the risk management process. Explain the role of risk management in the project planning process. Describe at least two risks and their sources for the scenario
|
|
What do you think was the main rationale for the use of gas
: Holocaust class.Super picky professor. Wants lots of details and explanations. You must explain your opinion with details.What do you think was the main rationale for the use of Gas Chambers and Death Camps?
|
|
Hypothetical situation can give some insight
: Although collective bargaining negotiations often take weeks or even months of preparation and more weeks to achieve a satisfactory settlement, even a hypothetical situation can give some insight to collective bargaining. The purpose of this exerc..
|
|
What is your holding period return rate
: Last year you bought a share of Apple Inc. stock at the price of $430. Because of the launch of new MacBook, Apple's stock price raised to $490 yesterday and you sold your share. Suppose Apple did not pay any dividend last year, what is your holding ..
|