Describe with examples how the cost of capital is determined

Assignment Help Operation Management
Reference no: EM131552805

Assignment

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.

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.

Reference no: EM131552805

Questions Cloud

What choices does larishka have : What are some of the ways that trade, politics, ethnicity and gender are related to each other in Larishka's life?
Calculating portfolio betas : You own a stock portfolio invested 23 percent in Stock Q, 22 percent in Stock R, 43 percent in Stock S, and 12 percent in Stock T. What is the portfolio beta?
Is japanese competition the problem : QUESTION: "Alex's company is having problems. Is Japanese competition the problem? What is the root cause?" Discuss
What are the portfolio weights and expected return : If a portfolio of the two assets has a beta of 2.41, what are portfolio weights? What is expected return on portfolio that is equally invested in two assets?
Describe with examples how the cost of capital is determined : Describe with examples how the cost of capital is determined. Would there be more efficient way to fund a growing company? Why or why not? Justify your answer.
Describe the slit structure : Given ? = 550nm, find d and b from Fig. 10.17a. Describe the slit structure (number, width, and separation) giving rise to the interference pattern in Fig.
How would you respond if you were diagnosed with hiv : How would you respond if you were diagnosed with HIV? Address hope and fear in your response. Be sure to refer to the GCU introduction and the textbooks.
Describe first time you were present with someone who died : Describe the first time you were present with someone who died. If you have not had that experience what do you imagine you would be thinking and feeling?
Discuss fear of communism and socialism : Discuss fear of communism, socialism, and anarchism in the United States and how that affected domestic policy.

Reviews

Write a Review

Operation Management Questions & Answers

  Book review - the goal

Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..

  Operational plan in hospitality enterprise

Operational plan pertaining to a hospitality enterprise is given in detail in the solution. The operational plan is an important plan or preparation which gives guidelines regarding the role and responsibilities of each and every operation at all lev..

  Managing operations and information

Recognise the importance of a strategic approach to the development and deployment of organisational information systems. Demonstrate an understanding of the importance of databases and their integration to the organisation's overall information mana..

  A make-or-buy analysis

An analysis of the holding costs, including the appropriate annual holding cost rate.

  Evolution and contributor of operations management

Briefly explain Evolution and contributor of Operations management.

  Functions and responsibilities of an operations manager

A number of drivers of change have transformed the roles, functions and responsibilities of an operations manager over recent years. These drivers have not only been based on technological innovations but also on the need for organisations to develop..

  Compute the optimal order quantity

Compute the Optimal Order quantity of DVD players. Determine the appropriate reorder point.

  Relationship to operations practice in the organisation

Evaluate problems in operations and identify approaches to overcoming them. Critically evaluate operating plans and identify areas for improvement. Justify, implement and evaluate changes to operations in line with modern approaches.

  A make or buy analysis

Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.

  Prepare a staffing plan

Prepare a staffing plan showing the change of your unit from medical/surgical staffing to oncology staffing.

  Leadership styles in different organizations

Ccompare the effectiveness of different leadership styles in different organizations

  Risk management tools and models

Be able to understand the concept of risk, roles and responsibilities for risk management and risk management tools and models.

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