Debt-Equity Mix Simulation Summary
Introduction
Finding the right balance is important. When talking capital structure decision, one must get the right blend of debt and equity. In this simulation provided by the University of Phoenix, I was asked to use the Weighted Average Cost of Capital (WACC), to find the optimal debt-equity mix for a café business known as El Café. During the simulation what seemed optimal at first was quickly changed in certain situations and a musical chairs with the debt-equity mix was the only way out.
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