Determining the Debt-Equity Mix Simulation In The Debt-Equity Mix Simulation, the organization El Café has to consider how to fund its expansion plan. The best way to attract investors for this expansion project is for the organization to apply the Weighted Average Cost of Capital (WACC) Tool. WACC us the average cost of capital invested in a company, weighted by that companys capital structure of debt and equity funding. (CEO.com) The WACC tool is used to make investment decisions based on the principal that the rate of return on an investment should be greater than the cost of capital. This tool helps the investor determine if the intended investment or purchase is worth undertaking. The formula for calculating WACC =D/Vx rd (1-Tc) + E/V x re. D represents the debt component, E is the equity component, re is the equity rate and V=sum of the debt equity components and Tc is the corporate tax rate. WACC is determined by market conditions, the organizations capital structure, dividend policy, and the organizations investment policies. The object of the simulation is to......

Word Count: 781
Page Count: 3.1 (250 words a page / double spaced)

View This Essay Now $19.99 (or $12.99 for membership)

What is Your Time Worth? Get INSTANT UNLIMITED ACCESS to this paper
and 15,000 other essays and term papers!

Search for other Determining Debt-Equity Mix essays, term papers and book reports.

Other Free Essays, Term Papers and Book Reports:

cause and effect of drinking free book report
Chronicles of Narnia: th Lion, the Wich, and the Wardorbe free term paper
Effects of Outsourcing free term paper
Teenage Drop-Outs free term paper
Benchmarking Global Communications free term paper
George Washington free term paper
Rabies free essay paper
Labor Conflict free book report
Windows Operating Features free book report
Reason and Emotion free book report
An investigation into the representations of ethnicity in the animation film genre, with particular reference to Disneys Mulan and Pocah free essay paper
Mount Everest Cast Study free term paper
Misunderstandings in Intercultural Communication free term paper
Don't Think Pink - What Really Makes Women Buy free term paper
Transportations Impact on Early American Business free term paper
Socrates and the Law free book report
Darfurian Holocaust free book report
Environmental Kuznets Curve free book report
wayne booth free essay paper
Analysis and comparison of the songs Bohemian Rhapsody by Queen and Hallowed Be Thy Name by Iron Maiden from a postmodern point of view. free essay paper

We have the best book reports, essays and term papers on Determining Debt-Equity Mix. For the cost of a pizza and some beer let us help you make your job of writing your paper easier. It's that simple.

Dear Free Essays:

Thanks for helping me with my term paper!
With so many essays and term papers on your service, I got a few ideas from mixing and matching and managed to write a great paper in 1/10 the time. My teacher thought so too because I got an A grade. Thank you so much!

Julia B.
Denver, Colorado

I'm very pleased with the quality of your term papers and essays. For all the time and worrying your service saved me from, it was well worth the $12.99.

Brandon W.
Columbus, Ohio

I totally waited to the last minute to work on my term paper and really started to freak. But your site totally came to my rescue and helped me out of a bind. I scored an 94 and was very pleased. Thank you!

Greg F.
UC San Diego

PRIVACY | TERMS & CONDITIONS | MEMBER LOGIN | CUSTOMER SUPPORT