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

SWOT compendium for Walmart: Stock, Bonds, and Merging with some other system of rules SWOT Analysis for Walmart: Stock, Bonds, and Merging with other Organization Colleen Felts, Catherine Scott, Brenda Serrano, Brian Smith, Clark Casada discipline Team A University of Phoenix Finance 370 Recently, Wal-Mart pertinacious to unfold its presence in Japan with a excogitate to open(a) 22 new stores in the next ii age (Banjo, 2012). How should Wal-Mart finance this expansion? Capital structure intend would vacate 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 from each one filling, resulting in a decision on which option would be best for the mega company. There argon several strengths in Wal-Mart training capital by selling stock. Selling stock is little risky than debt financing and it allows the company to r aise specie without liberal 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 flaccid for them to issue more stock. Despite all the strengths at that domicile ar to finance projects through selling stock, there atomic number 18 some weaknesses.

The first weakness is that as more stocks be outstanding, the amount of dividends payable increases. The value of the stock may similar 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 sharehold! ers to please. Organizations face umteen opportunities when selecting a means to meet capital needs. Mergers are one(a) rule to meet capital needs for companies struggling as hearty 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-encompassing essay, order it on our website: OrderCustomPaper.com

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