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    Funding for Wal-Mart Projects

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    Examine the structure and activities in Wal-Mart and identify two projects or events that required an investment. One should be a 'current project' and the other long-term investment project.

    For each project or event, identify the preferable source of funding. You may not have access to the actual source of funding so limit the paper to the source that is most appropriate. Then explain why that source is most appropriate.

    Include references to the background materials and discuss the main concepts of funding choice.

    © BrainMass Inc. brainmass.com October 9, 2019, 11:49 pm ad1c9bdddf
    https://brainmass.com/business/enterprise-resource-planning/funding-for-wal-mart-projects-268926

    Solution Preview

    Identifying the appropriate funding source for a company's project is important as this could affect the company's goal of attaining and maintaining its optimal capital structure. A company's capital structure is the "mix of debt and equity that a company uses to finance its business" (CFA, 2008 p. G-6) while the optimal capital structure is the mix of debt and equity that maximizes the value of the firm (CFA, 2008 p. G-6). This paper discusses two projects of the world's biggest retailer and discount store - Wal-Mart (NYSE: WMT) and the funds that the company chose to fund them and the recommended optimal capital structure.

    One of Wal-Mart's numerous current projects is the training and development of its associates or employees. This project though continuous for as long as Wal-Mart exists is actually broken down to into smaller, more mane gable ...

    Solution Summary

    The structure and activities in Wal-Mart are identified for two projects.

    $2.19