Benefits of warehouses to customers

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Capital Structure & WACC - Apex Printing
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Abstract
This paper mainly focuses on determining the target WACC of Apex Printing. Mary Francis has just returned to her office after preliminary discussions with investment bankers. The job now is to determine the target required return for the intended project along with description of capital structure. This paper also tells us how the capital structure and WACC might be useful to determine the feasibility of the project and a recommendation of which is more appropriate to apply to project evaluation. Finally this paper also defines marginal cost of capital.

Capital Structure & WACC - Apex Printing
Introduction:
Apex printing is targeting to determine the required return of the intended project. In connection with that, this paper describes the capital structure, determines the WACC, describes the usefulness of capital structure and WACC to determine the feasibility of the project and a recommendation of which is more appropriate to evaluate the project. Marginal cost of capital is also being described.
Capital structure:
Capital structure refers to the composition of various types of financing namely debt, preferred stock and common stock. All these components are the ways by which financing can be obtained from the investors including public. The way the capital components are weighed in the capital structure also determines the risk and solvency of the company. For example, too much of debt in the capital structure increases the risk and cost of capital of a company. This is because the debt investors would then interfere in the operations of the company and may stipulate terms for further financing. Increase in debt also decreases the profits of the company because the interest ...