Goff Computer

Goff Computer, INC. Martin Teal BUS 650 Managerial Finance Instructor Scott Shaw October 15, 2012 Goff Computer, INC. Goff Computer, INC has been around for almost eight years and has over seventy stores. Goff Computer, INC had $97 million in sales last year and wants to know what the cost of capital is. In order to answer this several steps have to be taken which include comparing the company to dingle and how they work. Dell is a study computer company and they build the computers to fit the customers needs and demands. The task at hand for Goff Computer , INC is to determine its cost of capital.There atomic number 18 several steps that must be done to get to the determination result. pure tone 1 gives directions on how to obtain the beginning information needful about Dell. shade 2 asks several heads and the responses be * The most late stock price is $18. 16 * The market capitalization for Dell is 32. 62B * Dell currently has 1. 8B shares outstanding * The beta for D ell is 1. 33 * The take back on 3-month Treasury bill is . 865% * The cost of equity using CAPM is 16. 71% Step 3 instructs to go to www. reuters. com and find the competitors. However, there are none listed Step 4 instructs to calculate the cost of debt for Dell by going to cxa. arketwtch. com/finra/BondCenter/Dfault. aspx DELL. GJ yield to maturity . 754% DELL. GF . 911% DELL. GL. 724% DELL. GP0% DELL. GO. 946% Step 5 asks about the weighted cost and the take hold value weights. The book value is higher. Step 6 is the real question asking what the potential problems are and what suggestions I would have. The potential problems that I settle when it comes to comparing the company to Dell are that Dell is a large company and so things are different and constantly changing for them.Dell is to a greater extent than stable and has loyal customers so they can afford to take more risk as well. The only improvement that I can fissure Goff Computer is to not try and follow a lar ge company. They are building their own successful company. Therefore they should set their own mode that sets them apart from the competition. References Ross, S. , & Westerfield, R. , Jaffe, J. , & Jordan, B. (2011). Corporate finance Core principles and applications (3rd ed. ). Boston, MD