1 explain why the present value of a cash flow stream and

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1. Explain why the present value of a cash flow stream, and the asset associated therewith; fluctuate in value with the level of interest rates in the capital markets.

2. List and explain the points of financial impact on a company if it raises the credit standards required of its customers who utilized trade credit offered by the company.

3. Define Weighted Average Cost of Capital and explain why a company must earn at least its Weighted Average Cost of Capital on new investments.  What are the financial implications if it does not?

4. As a corporation what are the benefits and ramifications of using convertible debt to finance a publicly traded company?  As an investor what are the benefits and ramifications of purchasing convertible debt in a publicly traded company?  Are there any conflicts between the goals of the investor and the goals of the corporation?

5. Which two of the six methods used to evaluate projects, and to decide whether or not they should be accepted, do you prefer as a financial manager? Explain why you decided on these two and not the other four.  List the perceived deficiencies of the four not selected.

6. What are the benefits and costs of placing a financially troubled company into a Chapter 11 Bankruptcy proceeding?  Is this a legitimate and ethical vehicle for management to use for the benefit of the company's stakeholders?

Reference no: EM13371325

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