In my reports attached can you help me relate the board structure to firm's value or its cost of...

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In my reports attached can you help me relate the board structure to firm's value or its cost of capital? How is board independence related to firm value? Only need a two to three paragraphs to explain.
	
Document Preview: BADM 741 GROUP PROJECT REPORT 2TEAM WINE, FOOD, AND MONEYJULY 8, 2012Lilliana Camacho PolkowChristina DilsChristine CaseyTracey K. Gray McDonaldWHOLE FOODS MARKETAs detailed in the 2011 Annual Report for Whole Foods Market (WFM), identifying risk and mitigating its impact is part of the overall strategy for the company.  This report details an analysis of the company’s risk structure, including overall risk, expected return, equity, cost of debt, cost of equity, and corporate governance with a focus on board structure, ownership pattern, and CEO compensation.  In spite of the anemic economic climate, Whole Foods Market is in a positive strategic position for growth.  Enjoying a stock price of $95.02 per share at close of the market on Friday, WFM continues to embark on a strategy to conservatively finance growth.  Risk Profile	Since the last fiscal year (FY2010), Standard and Poor’s rating agency increased the company’s rating to BB+.  This change in ratings clearly indicates a positive shift in the risk profile of the company, also demonstrated by an increase in stock price per share.  WFM has a beta of 0.68 and a standard deviation of XXXXXXXXXXAccording to NYU’s Stern School of Business, the average beta for retail grocers is 0.75 and the unlevered beta is 0.64 indicating that WFM is consistent with the industry.  While the total market beta is 0.92, the company is in good growth position.     WFM faces a variety of risks or threats based on their current economic situation.  The following summary of the risk analysis details the challenges faced by WFM.   Lease Agreements.  Most of the stores occupied by the firm are under lease which means company has to pay lease rent irrespective of the fact that the store is operative or not.  The company is obliged to pay lease rent no matter what happens which is a major area of concern for the company.Increased competition.  Since WFM entered the market, many firms have entered the industry such as...

David · Accepted Answer

Board’s Structure to its Firm Value and Cost of Capital 
The minimum number of the outside directors (even a majority) in a company, as well as an 
audit committee employed principally or solely by the group outside directors of the 
organization, is considered as the standard corporate governance practice. The same applies to 
the case of Whole Foods Market. The board structure in Whole Foods Market is usually chosen 
voluntary and is likely to be endogenous to other organizational characteristics. Value of the firm 
or performance or its cost of capital could also predict board structure,

In my reports attached can you help me relate the board structure to firm's value or its cost of capital? How is board independence related to firm value? Only need a two to three paragraphs to...

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