Explain why the present value of a stream of cash flow

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

2. List and explain the points of financial impact on a company if it increases the required standards of credit to their customers using trade credit provided by the company.

3. Set the Average Cost of Capital (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 thefinancial implicationsif it does?

4.As a corporation what are the benefits and consequences of the use of convertible debt are to finance a publicly traded company? As an investor, what are the benefits and ramifications of the purchase of convertible debt in a publicly traded company? Are there conflicts between the objectives of the investor and the company goals?

5.Which two of the six methods used to evaluate projects, and decide whether or not to be accepted as CFO you prefer? Explain why you decided on the two and not the other four. List the perceived shortcomings of the four who were not selected.

6. What are the benefits and costs of placing acompany with financial Bankruptcy? Is this alegitimate and ethical management vehicle to use for the benefit of the stakeholders of the company?

Reference no: EM13215165

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