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MCI Communications Corp.: Capital Struct...

Chaplinsky, Susan,...

Case

MCI Communications Corp.: Capital Structure Theory (A)

Chaplinsky, Susan; Harris, Robert S.

F-1175 | Published March 31, 1997 | 10 pages Case

Collection: Darden School of Business

Product Details

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

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