Calculate the weighted average cost of capital for each firm

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Compare the capital structures of the following firms and answer the related questions: General Motors Corporation [GM], an automobile manufacturing and financing firm; Walt Disney Company [Din an entertainment and information company; and Amazon Inc. [AMZN], an online retail sales firm.

a. What is the percentage of long-term debt, common stock, retained earnings, and preferred stock in each firm capital structure? Set up a table to illustrate your answer. (Hint: Click on Peers/Financial/Balance Sheet.)

b. Which firm has the highest, and lowest, relative amount of long-term debt? Common equity? Retained earnings?

c. In one paragraph, describe how you would calculate the weighted average cost of capital for each firm.

d. Where does each firm stand in relation to its industry peers with regard to the percentages of debt, common equity, preferred stock and retained earnings in its capital structure? (Click on Peers and change the peer set to Industry.)

Reference no: EM131419924

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