Compute cost of debt financing.

Identify and evaluate sources of debt financing.
Identify and evaluate sources of equity financing.
Compute cost of debt financing.
Compute cost of equity financing.
Determine optimal target capital structure.
Calculate weighted average cost of capital (parent company).
Determine how the parent company will pay for the target acquisition company.
Develop a strategic growth plan and explain how this acquisition supports the plan.

The course project for week 6 includes a summary of financial analysis with exhibits. Specifically, you will be preparing a summary of performance tests to determine how the acquiring company will pay for the acquisition. The amount should be in a range. All of these tests will be applied to the company being acquired. Therefore, my recommended format for this paper is a good introduction of the topic, a summary of the performance tests, a paragraph discussing the recommended range of price to pay for the company and a strong conclusion. Keep all of the details of the calculations out of the main paper and the details either in illustrations or in an appendix. Also, do not discuss the definitions or formulas for any of the calculations. Formulas may be included with your calculation details. As always include a cover page and a reference page. You must use APA or a similar format.

Week 2 Course Project: Proposal

Under the assumption that your organization (the acquiring company) is in a growth mode, identify an acquisition target that is in keeping with your organization’s mission and strategy. Use the ACCT600 Acquisition Scenarios in Doc Sharing to select your acquisition target.
Perform the industry analysis.
Prepare a brief, written proposal to the executive management team, explaining your potential choice (or choices) for acquisition: Overview of potential acquisition and why it makes sense to the parent. This is the who, what, where, why, when, and potentially how. You will consider many factors, including your industry as a whole and the current and expected economic climate.

Week 3 Course Project: Executive Reports Part A—Internal Management

Prepare an executive level report related to the target acquisition company’s financial and operational strengths and weaknesses that addresses the acquiring company’s internal management team. Key words: synergistic, opportunistic, and financial. Report on what your research into the target company’s current financial and operating status is (this should include a financial statement review and examination of the footnotes in the annual report) and report it your executive team and any key internal personnel. There should also be some consideration into how what is discovered makes the target a good (or bad) acquisition at this time.
Prepare an executive level report related to the target acquisition company’s financial and operational strengths and weaknesses that addresses the acquiring company’s external stakeholders. Key words: synergistic, opportunistic, and financial. This should reflect much of the information gathered in for the internal management report, but it needs to be tailored to fit the parent company’s external shareholders.

Week 4 Course Project: Risk Analysis

Evaluate risk factors for target acquisition company.
Evaluate risk factors present in the parent (acquiring) company.
Prepare a report on this analysis. This report should complement the previous documents from Weeks 2 and 3 and delve into areas of risk exposure for the parent in making the acquisition. The key is to identify the major risk exposures and how they can be mitigated.

Week 5 Course Project: Summary of Performance Tests with Exhibits

Prepare a summary of performance tests and analysis of the target acquisition.
Perform the following tests to help determine what the acquiring company will pay for the acquisition—this is a range. The focus of this deliverable is the target acquisition company.
Calculate the value of the firm’s operations.
Calculate weighted average cost of capital (target company).
Determine the firm’s intrinsic value.
Calculate the firm’s market value.
Determine the firm’s book value.
Determine what the parent company will pay for the target acquisition company. Be sure to include how the target company provides synergies and opportunities to the parent company.

Last week was week 6 assignment which you have. The situation is that jc penny is the company that is acquiring kohls.

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