CPK have a very conservative financial strategy. The facts show the company tends to do less risky investments (Risk Averse)
CPK should have to redefine its capital structure. In that matter, we will recommend that an optimal value for the company will be 30% Debt and 70% Equity.
With 30% of Debt:
WACC will decrease 2.78%
ROE will increase 23.33%
Stock Price will increase $ 0.75
Company Value will increase 2.5%
Net Income will decrease 13.9%