Reference no: EM132444753

Write a 4-5 page paper in which you:

1. Imagine you are a small business owner. Explain how you will apply the concept of NPV / payback rule to make a good financial decision.

2. Explain the advantages and disadvantages of debt financing and why an organization would choose to issue stocks rather than bonds to generate funds.

3. Discuss how financial returns are related to risk.

4. Describe the concept of beta and how it is used.

5. Contrast systematic and unsystematic risk.

6. Imagine your manufacturing corporation has just won a patent lawsuit. After attorney and other fees, your corporation will have about $1 million. Explain how you plan to invest the money in order to diversify the risk and receive a good return. Support your decisions with concepts learned in this course.

The specific course learning outcomes associated with this assignment are:

• Explain the concepts of time value of money, present and future value and how it influences financial decisions.
• Describe the key elements of the securities markets, and how the markets drive financial transactions, decision making and risk analysis.
• Describe the key elements of the securities markets and how the markets drive financial transactions, decision making, and risk analysis.
• Use technology and information resources to research issues in finance.
• Write clearly and concisely about finance using proper writing mechanics