Swot Analysis for Walmart: Stock, Bonds, and Merging with Another Organization

SWOT compendium for Walmart: Stock, Bonds, and Merging with some other arrangement SWOT Analysis for Walmart: Stock, Bonds, and Merging with other Organization Colleen Felts, Catherine Scott, Brenda Serrano, Brian Smith, Clark Casada education Team A University of Phoenix Finance 370 Recently, Wal-Mart pertinacious to run its presence in Japan with a excogitate to centripetal 22 new stores in the next ii age (Banjo, 2012). How should Wal-Mart finance this expansion? Capital structure intend would let in Wal-Mart to raise capital by selling roues, release bonds or unite with another(prenominal) organization. This paper will converse the strengths, weaknesses, opportunities and threats of all(prenominal) filling, resulting in a decision on which option would be best for the mega company. There argon several strengths in Wal-Mart rearing capital by selling stock. Selling stock is slight risky than debt financing and it allows the company to rais e specie without grownup 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 lite for them to issue more stock. Despite all the strengths at that mark ar to finance projects through selling stock, there argon some weaknesses.

The first weakness is that as more stocks are outstanding, the amount of dividends payable increases. The value of the stock may identical decrease if there are too umteen shares available. Another disadvantage is that stock financing is not tax deductible. Finally, as stocks are issued, there are more shareholders to please. Org! anizations face more opportunities when selecting a means to meet capital needs. Mergers are one(a) manner to meet capital needs for companies struggling as healthful as those looking for future growth. Walmart must divvy up into precondition the strengths, weaknesses, opportunities, and threats of a merger. Strengths of Walmart merging with another company are the change magnitude debt financing, increased tax benefits, and...If you want to get a all-embracing essay, order it on our website: OrderCustomPaper.com

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