SWOT compendium for Walmart: Stock, Bonds, and Merging with some other face SWOT Analysis for Walmart: Stock, Bonds, and Merging with other Organization Colleen Felts, Catherine Scott, Brenda Serrano, Brian Smith, Clark Casada skill Team A University of Phoenix Finance 370 Recently, Wal-Mart pertinacious to extend its presence in Japan with a excogitate to soundly-defined 22 new stores in the next ii long time (Banjo, 2012). How should Wal-Mart finance this expansion? Capital structure intend would pull up stakes 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 severally filling, resulting in a decision on which option would be best for the mega company. There argon several strengths in Wal-Mart aggrandizement capital by selling stock. Selling stock is little risky than debt financing and it allows the company to raise specie without better-looking 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 diffused for them to issue more stock. Despite all the strengths at that pose ar to finance projects through selling stock, there atomic number 18 some weaknesses.
The first weakness is that as more stocks ar outstanding, the amount of dividends payable increases. The value of the stock may like decrease if there are too umteen shares available. Another disadvantage is that stock financing is not tax deductible. Finally, as sto cks are issued, there are more shareholders ! to please. Organizations face many a(prenominal) opportunities when selecting a means to meet capital needs. Mergers are one(a) system to meet capital needs for companies struggling as well as those looking for future growth. Walmart must divvy up into condition 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 rise essay, order it on our website: OrderCustomPaper.com
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