14 Aug Read through the below post and provide any on of the following: APA format 300 Words.
Read through the below post and provide any on of the following: APA format 300 Words.
.Ask a probing question, substantiated with additional background information, evidence or research.
· Share an insight from having read your colleagues’ postings, synthesizing the information to provide new perspectives.
· Offer and support an alternative perspective using readings from the classroom or from your own research.
· Validate an idea with your own experience and additional research.
· Make a suggestion based on additional evidence drawn from readings or after synthesizing multiple postings.
Post
This course taught me that achieving the goals of corporate finance requires that any corporate investment be financed appropriately. Management must therefore identify the "optimal mix" of financing, the capital structure that results in maximum value. The sources of financing will, generically, comprise some combination of debt and equity. On the other hand, financing a project through debt results in a liability that must be serviced and hence there are cash flow implications regardless of the project's success. Certain assignments showed me that the equity financing is less risky in the sense of cash flow commitments, but results in a dilution of ownership and earnings. The cost of equity is also typically higher than the cost of debt, and so equity financing may result in an increased hurdle rate which may offset any reduction in cash flow risk (Gitman, Lawrence 2003).
If were to be part of the management making managerial decision, I would attempt to match the financing mix to the asset being financed as closely as possible, in terms of both timing and cash flows. Topics like working capital management entails short term decision (Eliyahu M, 1986). These decisions are therefore not taken on the same basis as Capital Investment rather they will be based on cash flows and / or profitability (Cox, Jeff, 2006). As exposed in the course, I can see that financial managers measure the development of the company, they determine the financial consequences, the tendencies and recommend on how to use the assets of the organization for the wellbeing and survival of the business in the long run. In today’s world it is imperative to have the means and tools needed to be competitive; there must be a vision that there are no borders in order to make a business successful and to guarantee its survival in the long run. And the big one was that the decision making based on different scenarios must be done in order to assure the right use of the assets on the company (Kermit D. Larson 2007).
References:
1. Gitman, Lawrence (2003), Principles of Managerial Finance, 10th edition, Addison-Wesley Publishing.
2. Goldratt, Eliyahu M., & Cox, Jeff, (2006) The Goal, Croton-on Hudson, New York, North River Press.
3. Pyle, William W., and Kermit D. Larson (2007). Fundamental Accounting Principles. Homewood, Illinois: Richard D. Irwin.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Wridemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Place Order” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.