What is investment banking how would an investment banker

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1. What is investment banking? How would an investment banker assist an organization in going public? As a chief financial officer, what information would you need to select an investment banker?

 2. What is Earnings Before Interest and Taxes-Earnings Per Share (EBIT-EPS) analysis? What is the indifference curve? How is risk factored into the EBIT-EPS analysis? What are basic shortcomings of EBIT's analyses?

 3. What is the difference between operating and financial leverage?  What are the risks of having an excessive amount of financial leverage in an organization?  What is the degree of total leverage?

 4. Define the factoring of accounts receivables. How does factoring affect cash management? Explain the difference between factoring and accounts receivable financing.

 5. What is an aggressive financing strategy? What are components of aggressive finance strategies? What is the difference between the aggressive and conservative financing models? Under what circumstances would you use either model?

 6.Working Capital is calculated as Current Assets - Current Liabilities.  The trouble is that companies typically have to fund inventory with short term debt.  The longer a company holds inventory, the longer they have to pay to carry the inventory (inventory holding costs).

What ratio calculates how often the company turns their inventory into revenue?  Why is this important?

Reference no: EM13387328

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