Intel Corporation: Sources of Funds and Capital Structure for Innovation

PROPOSAL

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION ...............................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Present report is based on the Intel corporation. In this dynamic business environment
companies cannot survive bringing continuous innovations in its product and services. Company
performance is strong and is serving the industry from years successfully. In this project
company is planning to expand its business by bringing innovations for cell phone processors.
Previously company was producing processors for only computers and laptops. It has a brought a
new idea for making cell phone processors. This report covers the sources of funds and other
issues and challenges that will be faced.
MAIN BODY
The company for making investment and bringing new innovations requires funds. They
are the essential source for any project without this it could not be achieved. There are various
sources of funds available to an enterprise. Before raising the funds it is required to analyse the
most appropriate source i.e. debt or equity. Company can raise loans through both the sources
(Phills, Deiglmeier and Miller, 2018). It should have ensure that it is having the most
appropriate mix of debt and capital. It has to analyse the cost of capital before the investments
and that will be after raising funds from different sources. Weighted average cost of capital
should be such that the profits of company are not highly affected.
Present WACC of Intel company.
Calculations of WACC.
Particulars 2019 2018
EBT 24058 23317
Shares Outstanding 4290 4516
Cash Interest paid 469 448
Total debt 29001 26359
EAT 21048 20753
Variable Value Description
E 255899
Company's current market cap :
Last day closing price * Common shares outstanding
= 59.65 * 4290
D 27680
2 year average
Total Debt :
(26359 * 29001) / 2
EV 283579 Company value : E+D
1