Describe with examples how the cost of capital is determined

Assignment Help Financial Management
Reference no: EM131282164

Managing Finance

The Genesis Energy operations management team was excited to understand the various options for securing financing to fund the rapid growth plans. The team was surprised by the cost associated with using funds supplied by others after accounting for risk of investments in its small but profitable company. Sensible Essentials explained how the cost of external financing can be calculated.

Using the readings for the module, Argosy University online library resources, the Internet, and the sources you identified in Module 3, do the following:

• Explain with examples how the cost of capital is determined.

• Calculate the differences in cost and risk. Explain why the costs and risks of external financing are important for the organization to understand.

• Explain why rapid growth plans are important to a small company. Would there be a more efficient way to fund a growing company? Why or why not? Justify your answer.

Post your response.

Write your initial response in 300-500 words.

Your response should be thorough and address all components of the discussion question in detail, include citations of all sources, where needed, according to the APA Style.

Reference no: EM131282164

Questions Cloud

The hiring process and managing a diverse workforce : Imagine that you are the HR Director at your current organization or an organization with which you are familiar. As the HR Director, you must use different employment law requirements to create methods and policies that support the promotion of a..
Analyze financing mix and cost associate with recommendation : Identify and compare interest rates, both short-term and long-term, using debt and equity. Analyze the financing mix (short/long) and the cost associated with the recommendation.
Mechanism of solving issues in an organization : Operations Management - BUSS1501 - Elaborate the advantages of using capacity management for solving capacity issues in any organization and what is forecasting and how does it help in solving problems in an organization
Construct the signal constellation for given pair of signals : Figure shows a pair of signals s1(t) and s2(t) that satisfy this definition. Construct the signal constellation for this pair of signals.
Describe with examples how the cost of capital is determined : Explain with examples how the cost of capital is determined. Calculate the differences in cost and risk. Explain why the costs and risks of external financing are important for the organization to understand.
Describe non-financial measures that should be important : Describe the non-financial measures that should be considered and are important to the success of an organization. Explain why these measures should also be considered in the strategic initiatives of the organization.
Construct signal constellation for the biorthogonal signals : The extension of orthogonal to biorthogonal signals leaves the dimensionality of the signal space unchanged. Explain how.
Reasonable accommodating and work-life conflicts : Using the e-Activity, summarize the outcome of the selected case. Then, outline a corrective action plan geared toward mitigating the unfair reasonable accommodation practices within the organization in question.
Write a page for how the presidential campaing marketing : Write One page assaiment about how the Presidential campaing marketing.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd