Financial Analysis

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Kohl’s would acquire J.C Penney holding company and its subsidiary J.C Penney stores including its 1,062 stores in 49 states and Puerto Rico as well as their 13 distribution centers as a wholly owned subsidiary. This would allow kohl’s to have access to J.C Penney’s private and exclusive brands in addition to an agreement to allow Sephora to operate in Kohl’s shifting best practices from each chain to the other including technology, rewards programs and so on. In addition, Kohl’s will be able to sell specific brands, develop unique marketing campaigns, and develop a website that will enhance Kohl’s design and functionality. Moreover, this would

Course Project: Summary of Financial Analysis with Exhibits

· Perform tests to help determine how the acquiring company will pay for the acquisition. The focus of this deliverable is the acquiring company.

· 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 pla