This case offers an introductory exercise for estimating the cost of capital (cost of equity, weighted average cost of capital) for a company considering a large increase in debt. Students are asked to compare the debt policy of MCI Communications with that of five other leading telecommunications company MCI find optimal capital structure.

This case offers an introductory exercise for estimating the cost of capital (cost of equity, weighted average cost of capital) for a company considering a large increase in debt. Students are asked to repay the debt policy of MCI Communications with that of five other leading telecom companies to compare to find MCI optimal capital structure.
«Hide

from
Susan Chaplinsky,
Robert S. Harris
Source: Darden School of Business
11 pages.
Release Date: 31, March 1997. Prod #: UV2421-PDF-ENG
MCI Communications Corp.: Capital structure theory, a solution HBR case

[related_post themes="flat"]