Comparing Wells Fargo And Wachovia

Companies analyze their strength and weakness to evaluate and project how they can improve or make profit in the coming years. So some companies will go through financial leverage by using debt to acquire additional assets as Wells Fargo did in acquiring Wachovia according to San Francisco & Charlotte, N.C (Business Wire 2008). Wells Fargo acquired all outstanding shares of common stock of Wachovia in stock-for-stock transaction, including preferred equity and indebtedness. They did this to expand their business in other states and cities. Other companies will sell shares, stock and use other means with the exception of acquiring debt to raise money.

According to Karen Firestone (20120). Leverage can be positive, thanks to the countless individuals