The OCS project requires you to determine the optimum capital structure.
to download instructions for the OCS assignment and review the instructions.
to download “Sample Combination WACC and OCS Spread Sheet.
Complete the OCS project according to the assignment instructions. For example:
- Use the “Sample Combination WACC and OCS Spread Sheet” as a model.
- Your table will likely not be identical since it depends on what your capital structure is now.
- What was the existing capital structure for your firm? Do you believe it was optimum?
- Use Hamada?s equation to determine the optimum.
- Should your company take on more debt, repurchase stock, have a seasoned equity offering? Justify your answers