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.
Resources: Tutorial help on Excel® 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:
Format your paper consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment. You should submit both the Microsoft Word document and the excel spreadsheet.
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