Importance of a balanced capital structure and the problems

Assignment Help Financial Management
Reference no: EM132001

You are the financial manager of North plc, a listed manufacturing company, which has divisions in a number of countries and is considering expansion through acquiring or working with other companies. This can involve increasing, substantially, the amount of debt in the company.

You have decided to try and enhance the understanding of the Board of Directors of some relevant key areas of financial management.

The areas you have decided to focus upon are:-

1. The importance of a balanced capital structure and the problems which are associated with high levels of gearing.

2. The reasons for corporate restructuring involving mergers and takeovers and evaluate the various methods by which such restructuring may be financed.

You are needed to produce a report to the board of directors which explains and discusses the above areas.

The report should add critical evaluation of the models and concepts proposed outlining their merits and limitations. You may incorporate logical assumptions with regard to the company and should use numerical examples designed by yourself to illustrate the models and concepts that you propose to adopt.

Reference no: EM132001

Questions Cloud

Prepare executable program and a dictionary program : Prepare executable program and a dictionary Program.
Does the school organize anti bullying programs : Developing an Action Research Plan on Anti Bullying programs.
Write an analysis about test of liquidity : Write an analysis about test of liquidity that compare Radio Shack and Conn's to Best buy.
Write about the financial statement analysis : Write about Best buy about their Financial Statement Analysis
Importance of a balanced capital structure and the problems : The importance of a balanced capital structure and the problems which are associated with high levels of gearing.
Calculate the total finance charge : Calculate the total finance charge and annual allocation of finance charge
Effects of organizational culture : Effects of Organizational Culture on Organizational Adherence exist on hotel managers
Simulate a simple multiuser computer system : Prepare a java program to simulate a simple multiuser computer system
Write a recursive program : Write a recursive program to compute the number of ways in which an integer k can be written as sum

Reviews

Write a Review

 

Financial Management Questions & Answers

  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.

  Determine the percentage of total payment spent

Determine the Percentage of Total Payment Spent

  Develop a financial analysis

Develop a financial analysis

  Supply and demand

Question based on supply and demand

  Prepare a business plan

Prepare a business plan that would be useful for launching your product and obtaining financial and managerial support from potential backers.

  Find the annual withdrawal

Find the Annual withdrawal

  Explain the important characteristics of this index

Develop an insight into the pricing of financial instruments

  Indifference curve analysis

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change.

  Business finance task - capital budgeting

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

  Future generation telecommunication technology

Future Generation Telecommunication Technology

  Describe vernons product life-cycle theory of fdi

Describe Vernon's product life-cycle theory of FDI

  Pricing and production decisions

Pricing and Production Decisions at PoolVac, Inc.

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