Complete Problems 1–4 evaluating optimal capital structure and the financial health of a firm.
January 22, 2021Please read instructions. Based off of the first project, attached.
January 22, 2021WACC and cost of equity
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.