Capital Structure
Select a Fortune 500 company or another company you are familiar with.
Consider pharmaceuticals, computer hardware, retail, or automotive industries for your selection.
If you choose a company that is not in the Fortune 500, ensure that enough financial information and key performance indicator results are available to complete the assignment.
Imagine your manager has asked you to help with a presentation on the company’s capital structure at the company’s annual meeting.
Research the capital structure of the company. Determine the weights of debt and equity. Determine the Cost of Debt and Cost of Equity of the company.
Calculate the company`s WACC using a 28% tax rate. Use qualitative research reports (annual reports) to discuss the financing ways that the company has used historically.