Question: I just need help on what would be a proper conclusion from this analysis. I answered Q1 and Q2. Below were the questions assigned. Just
I just need help on what would be a proper "conclusion" from this analysis. I answered Q1 and Q2. Below were the questions assigned. Just looking for a short summary on what should be mentioned in this conclusion analysis! I was thinking mentioning the min value of the WACC and what that corresponds to as well as the MAX level. Any input on this would be great thanks!
Q1. Based on the above information, what is the firm's optimal capital structure and what is the weighted average cost of capital at the optimal structure? Use excel spreadsheet to show all workings and result in a presentable manner.
Q2. Assume that the company decides to raise debt in accordance with the determined optimal capital structure above. In addition, assume that the company uses the cash raised from the debt to repurchase shares. Create a table that will show the anatomy of a recapitalization from the base position (no debt) to after debt but before share repurchase, and finally after the repurchase.
The table must show, at a minimum, the value of operations, value of equity, price per share and total shareholder wealth;
307 Project 2.xlsx - Excel File Insert Page Layout Formulas Data Revien ViewTell me what you want to do Hillyer, Chadron Share Home AutoSum-AT Cut 11A A Er wrap Text (- Calibri General Paste Copy- Format Painter IU Clipboard Conditional Format as Cell Insert Delete Format e lear. Sort & Find & Filter Select B 1 . H -A. Merge & Center. $. % , Formatting Table Styles Styles For Editing H30 arket Risk Premium Deb Eq.ity r-Tax Cost ot Debo 42,48,2022 41e,bte,tcbe 023 41,25,554 4DS,2722 Sheet Ready 307 Project 2.xlsx - Excel File Insert Page Layout Formulas Data Revien ViewTell me what you want to do Hillyer, Chadron Share Home AutoSum-AT Cut 11A A Er wrap Text (- Calibri General Paste Copy- Format Painter IU Clipboard Conditional Format as Cell Insert Delete Format e lear. Sort & Find & Filter Select B 1 . H -A. Merge & Center. $. % , Formatting Table Styles Styles For Editing H30 arket Risk Premium Deb Eq.ity r-Tax Cost ot Debo 42,48,2022 41e,bte,tcbe 023 41,25,554 4DS,2722 Sheet Ready
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