Writing two pages about : explain ratios for each group and add strengths and weakness of each company.
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The CEO has also mentioned to you the mission statement will need to be updated. The current mission statement for Air Inc. is: \”It is our mission to provide exceptional customer service and establish long term relationship with our clients.\” The current mission statement for Plane Inc. is: \”It is our mission to provide competitive rates and terms to our clients with integrity and honesty.\”As the leader of your organization, you are responsible for the company\’s future. You are responsible for leading, motivating, and challenging your staff to meets it goals. As a part of the changes that are taking place at the organization, you have been asked to re-write the mission statement.In a 1-2 page paper, cover the following:
Whispering Pines, Inc. is all-equity-financed. The expected rate of return on the shares is 12%. Calculate the opportunity cost of capital for an average-risk Whispering Pines investment. Next, suppose the company issue debt, repurchases shares, and moves to a 30% debt to value ratio (D/V=.30). Calculate the company’s weighted-average cost of capital at the new capital structure. The borrowing rate is 7.5% and the tax rate is 35%. Based on the WACC calculation, provide a one –to -two page paper summarizing your recommendations for Whispering Pines.