FIN 370 Week 4 Assignment WACC and Corporate Investment Decisions Homework | Page 2

● 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 .