The Right Mix- Debt vs. Equity

The Right Blend
Week 3 of Finance 325 required students to complete the simulation titled "Determining the Debt Equity Mix: The Right Blend." This simulation asked students to work through various stages of a newly started exotic coffee shop, while determining the right debt-equity combination and optimal Weighted Average Cost of Capital (WACC). Students were given ownership of an extremely popular coffee shop named, "El Café." The shop is located in the very diverse community of Minneapolis, Minnesota. …