SWOT compendium for Walmart: Stock, Bonds, and Merging with some other constitution SWOT Analysis for Walmart: Stock, Bonds, and Merging with some other Organization Colleen Felts, Catherine Scott, Brenda Serrano, Brian Smith, Clark Casada scholarship Team A University of Phoenix Finance 370 Recently, Wal-Mart pertinacious to flourish its presence in Japan with a excogitate to clean 22 new stores in the next ii geezerhood (Banjo, 2012). How should Wal-Mart finance this expansion? Capital structure intend would abandon Wal-Mart to raise capital by selling roues, release bonds or unite with other organization. This paper will converse the strengths, weaknesses, opportunities and threats of for each one filling, resulting in a decision on which option would be best for the mega company. There argon several strengths in Wal-Mart facelift capital by selling stock. Selling stock is slight risky than debt financing and it allows the company to rais e specie without plentiful up the amount of control it would relinquish from merging with another company. Wal-Mart is already a publicly traded company, so it would be comfortable for them to issue more stock. Despite all the strengths at that regulate ar to finance projects through selling stock, there ar some weaknesses.
The first weakness is that as more stocks be outstanding, the amount of dividends payable increases. The value of the stock may similarly decrease if there are too umteen shares available. Another disadvantage is that stock financing is not tax deductible. Finally, as stocks a re issued, there are more shareholders to pl! ease. Organizations face umteen opportunities when selecting a means to meet capital needs. Mergers are one(a) order to meet capital needs for companies struggling as hale as those looking for future growth. Walmart must divvy up into contemplation the strengths, weaknesses, opportunities, and threats of a merger. Strengths of Walmart merging with another company are the increase debt financing, increased tax benefits, and...If you want to get a adept essay, order it on our website: OrderCustomPaper.com
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