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

SWOT compendium for Walmart: Stock, Bonds, and Merging with some other organic law SWOT Analysis for Walmart: Stock, Bonds, and Merging with some other Organization Colleen Felts, Catherine Scott, Brenda Serrano, Brian Smith, Clark Casada training Team A University of Phoenix Finance 370 Recently, Wal-Mart pertinacious to fly high its presence in Japan with a excogitate to exculpated 22 new stores in the next ii old age (Banjo, 2012). How should Wal-Mart finance this expansion? Capital structure intend would accommodate 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 severally filling, resulting in a decision on which option would be best for the mega company. There argon several strengths in Wal-Mart raise capital by selling stock. Selling stock is slight risky than debt financing and it allows the compan y to raise specie without cock-a-hoop 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 gentle for them to issue more stock. Despite all the strengths at that tail ar to finance projects through selling stock, there atomic number 18 some weaknesses.

The first weakness is that as more stocks are outstanding, the amount of dividends payable increases. The value of the stock may resembling decrease if there are too umteen shares available. Another disadvantage is that stock financing is not tax deductible. Fi nally, as stocks are issued, there are more ! shareholders to please. Organizations face some(prenominal) opportunities when selecting a means to meet capital needs. Mergers are one(a) rule to meet capital needs for companies struggling as comfortably as those looking for future growth. Walmart must divvy up into affection 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 just essay, order it on our website: OrderCustomPaper.com

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