Calculating-WACC-and-giving-an-analysis-on-investment-decisions

/in /by

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 600-word analysis including the following:

  • Calculate the company’s weighted average cost of capital. Use the dividend discount model.
  • Show calculations in Microsoft Excel Template provided.
  • Show calculations and formulas in Microsoft® Word within the analysis.
  • 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.

NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.

Do you need a similar assignment done from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount! Use Discount Code "save15" for a 15% Discount!

Request essay help

You can trust us for this and even for your future projects