Write a 1000 word, APA style, summary of the article reading for this week. Describe two ways that the concepts from this class were described in the article.

Be sure to include a title page and 2 references.  References must be located in the Grantham University Online Library.  Only the body of the paper will count towards the word requirement.  See Rubric below.

Compare/Contrast the life of an indentured servant with that of an African slave

How were these groups similar and/or different? What were their reasons for relocating to the New World? Discuss their previous circumstances. Describe their circumstances after coming to the New World. Discuss any issues associated with the historical/political atmosphere of this period. Where did they settle? Why did they settle in a particular area? Identify any specific characteristics associated with each group. Was life in the New World what they had previously expected? Why or why not? Support your essay with historical facts by using scholarly resources

Assignment 2: The Weighted Average Cost of Capital

 

By Wednesday, October 22, 2014, complete the following assignment:

 

Coogly Company is attempting to identify its weighted average cost of capital for the coming year and has hired you to answer some questions they have about the process. They have asked you to present this information in a PowerPoint presentation to the company’s management team. The company would like for you to keep your presentation to approximately 10 slides and use the notes section in PowerPoint to clarify your point.

 

Your presentation should address the following questions and offer a final recommendation to Coogly. Make sure you support your answers and clearly explain the advantages and disadvantages of utilizing the weighted average cost of capital methodology. Include at least one graph or chart in your presentation.

 

Company Information

 

The capital structure for the firm will be maintained and is now 10% preferred stock, 30% debt, and 60% new common stock. No retained earnings are available. The marginal tax rate for the firm is 40%.

 

1. Coogly has outstanding preferred stock That pays a dividend of $4 per share and sells for $82 per share, with a floatation cost of $6 per share. What is the component cost for Coogly’s preferred stock? What are the advantages and disadvantages of using preferred stock in the capital structure?
2. If the company issues new common stock, it will sell for $50 per share with a floatation cost of $9 per share. The last dividend paid was $3.80 and this dividend is expected to grow at a rate of 7% for the foreseeable future. What is the cost of new equity to the firm? What are the advantages and disadvantages of issuing new equity in the capital structure?
3. The company will use new bonds for any capital project, according to the capital structure. These bonds will have a market and par value of $1000, with a coupon rate of 6% and a floatation cost of 7%. The bonds will mature in 20 years and no other debt will be used for any new investments. What is the cost of new debt? What are the advantages and disadvantages of issuing new debt in the capital structure?
4. Given the component costs identified above and the capital structure for the firm, what is the weighted average cost of capital for Coogly? What are the advantages and disadvantages of using this method in the capital budgeting process?

Submit your assignment to the M4: Assignment 2 Dropbox.

 

Assignment 2 Grading Criteria	Maximum Points
Correctly calculated the cost of issuing preferred stock and explained the advantages and disadvantages of using preferred stock in the capital structure.	20
Correctly calculated the cost of issuing new equity and explained the advantages and disadvantages of issuing new equity in the capital structure.	20
Correctly calculated the cost of new debt and explained the advantages and disadvantages of issuing new debt in the capital structure.	20
Correctly calculated the weighted average cost of capital for the firm and explained the advantages and disadvantages of the using this method in the capital budgeting process.	20
Prepared an informative and accurate PowerPoint presentation which summarized the relevant and important aspects of the findings. At least one chart or graph was included and the notes section was used to clarify the talking points.	10
Written in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources; displayed accurate spelling, grammar, and punctuation.	10
Total:	100

The book Into Thin Air by Jon Krakauer (1998) began as an article in Outside Magazine that chronicled a tragic series of events on Mount Everest. The article is a near perfect example of decision making using social influence, persuasion, and risk taking that had gone badly awry with profoundly tragic consequences. In 1996, a team of mountain climbers, led by Rob Hall’s climbing company, Adventure Consultants, and Scott Fisher’s company, Mountain Madness, attempted to climb Mount Everest. However, due to a variety of events, both human and natural, disaster ensued. Eight climbers died and several were severely injured. Survivor, Jon Krakauer, a journalist, chronicled the event in his book Into Thin Air. This is one example of how decision making using social norms and protocols can be used to persuade others to achieve an objective even when the outcome is not the desired result. Assignment Details Examine a time when you were involved in decision making that went awry as a result of protocols, social norms or persuasive techniques. If you do not want to use an example from your business or personal experience you can base your scenario on a journal article of your selection to use as the foundation for this assignment. Here are some key words to help you find an article for this assignment: Decision making Risk taking Persuasion Social heuristics Write a 5–6 page paper in Word format that addresses the following: Describe a decision-making scenario using your business experience, personal decision making or cited journal article; include an example of the decision-making process, why it was a risk, how persuasion was used, and what the social heuristics were. Explain the incentives that caused others to support the decision and identify why these incentives were selected. Identify the risks and the potential decision biases in your scenario. Propose the corrective steps that should have been taken to overcome these biases. If a risk assessment was conducted how did this effect the decision-making process? Analyze your scenario for what happened in terms of social heuristics. Explain how decisions were made and the social factors that shaped the decision-making environment. Discuss the greatest challenges to sound decision-making in your scenario. Critique the decision-making process used by the sponsor(s) and leader(s) of the decision. Identify the mistakes made by the sponsor(s), leader(s) and team members or others impacted by the decision during the implementation of the decision. Support your statements with scholarly references and appropriate examples.