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Capital Structure Decision and the Cost of Capital - Essay Example

High school
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Finance & Accounting
Pages 5 (1255 words)
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Finance Module 4 Case Assignment Name of the Writer Name of the Institution Capital Structure Decision and the Cost of Capital Introduction The capital structure decision relating to the mixture of debt and equity for a company has important financial consequences…

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Capital Structure Decision and the Cost of Capital

About These Firms Headquartered in California USA, eBay Inc. is an online auction website that was started in September 2005. You can buy almost anything on eBay, but it has to be legally admissible and not dangerous or restricted items. People bidding for items on eBay can use auction price listings, fixed price format or fixed price format with best offer. Presently eBay operates in around 30 countries. When it went public in September 2008, the price went up to $53.50 from $18.00 on the opening day of the IPO offer. As of 14 February 2012, the stock price of the eBay company (EBAY) was $32.89 and its market capitalization was 42.39 billion. It has a beta of 1.29. The Clorox Company is headquartered in Oakland, California and is best known for its Clorox bleach product that is a mixture of mainly chlorine and sodium hydroxide. The company was formed in May 1913 by a group of five entrepreneurs from different professions who decided to set up a commercial scale liquid bleach factory in the USA. Originally concentrating on industrial grade bleach, the founders nevertheless decided to create a less potent form of the bleach for household use in 1917, and sales skyrocketed. ...
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