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Pages:
2 pages/≈550 words
Sources:
3 Sources
Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Coursework
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 11.23
Topic:

Wilson Corporation Capital Structure

Coursework Instructions:

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.
Assignment Steps
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 500-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.
Pick the best for this scenario agree or disagree.
This is one of the last assignments for this class and this is my worst subject please do the best you can thank you very much.

Coursework Sample Content Preview:
Wilson Corporation Name Institution Date Wilson Corporation Wilson Corporation capital structure includes its long term debt is at 40 percent with 60 percent common stock. The debt is expected to yield a 6 percent with a corporate tax rate of 35 percent. The trading of its common stock is at $ 50 per share and the company expects a $ 2.50 dividend per share with a growth rate of 4 percent. To enable the company make...
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