Goff Computer

Goff Computer, INC. Martin blue green BUS 650 Managerial Finance Instructor Scott Shaw October 15, 2012 Goff Computer, INC. Goff Computer, INC has been around for about eight years and has over 70 stores. Goff Computer, INC had $97 million in sales last year and wants to know what the monetary value of capital is. In order to answer this several locomote have to be taken which include comparing the caller to dell and how they work. dell is a major 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 bell of capital.There atomic number 18 several steps that must be done to get to the end result. cadence 1 gives directions on how to obtain the ascendant information needed about Dell. Step 2 asks several questions and the responses are * The most recent stocktaking price is $18. 16 * The market capitalization for Dell is 32. 62B * Dell currently has 1. 8B shares outstanding * The beta f or Dell is 1. 33 * The yield 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 book value weights. The book value is higher. Step 6 is the real question asking what the authority problems are and what suggestions I would have. The potential problems that I see when it comes to comparing the company to Dell are that Dell is a larger company and so things are different and constantly changing for them.Dell is more motionless and has loyal customers so they can afford to take more risk as well. The only benefit that I can offer Goff Computer is to not try and follow a large company. They are building th eir own successful company. Therefore they should set their own trend that sets them apart from the competition. References Ross, S. , & vitamin A Westerfield, R. , Jaffe, J. , & Jordan, B. (2011). Corporate finance Core principles and applications (3rd ed. ). Boston, MD