Business Financing and the Capital Structure - Research Paper Example

Only on StudentShare

Extract of sample
Business Financing and the Capital Structure

Concept of working capital management Working capital management is fundamentally described as a managerial technique to preserve the financial health of a company in repaying its short-term debts and simultaneously, sufficing the need for short-term operating expenses. Advantages of working capital management can be viewed in terms of increased earnings of a company. Contradictorily, the conceptual framework is often criticised to offer only short-term financial planning assistances to the users. Notably, working-capital ratio and inventory-turnover ratio can be regarded as the two vital instruments to assess the viability of working capital management strategies applied by a company (Rehn, 2012). Financial instruments that are used as marketable securities to park excess cash Marketable securities are mostly favored by investors owing to their high liquidity benefits. In this regard, Treasury bills, commercial papers, bankers’ acceptances and other forms of government bonds as well as common stocks can be noted as the financial instruments used as marketable securities by investors to park excess cash (Chudson, 1945). Question 2 Selection of equities and debts to raise business capital depend on diverse factors, which mainly include the micro-economic performance of the economy and the liquidity position along with the risk taking ability of the company. ...Show more

Summary

Business Financing and the Capital Structure Question 1 Financial planning process to estimate asset investment requirements for a corporation Based on simplicity, many corporations perform projected cash flows to evaluate the requirements of asset investment…
Author : crunte
Save Your Time for More Important Things
Let us write or edit the research paper on your topic
"Business Financing and the Capital Structure"
with a personal 20% discount.
Grab the best paper

Related Essays

Financial Analysis of Capital Structure
Both forms of capitals have their advantages and disadvantages. It is the corporation’s and management’s responsibility to find the optimum capital structure in terms of risk and reward primarily for the operating strategy and maximizing of total shareholder returns.
5 pages (1250 words) Term Paper
Career Planning
Individuals have diverse interests and goals in terms of career paths. For the purpose of this activity, one aims present an analysis of one’s long-term career development and to explain the major components of a resume, of which one’s own resume is attached as Appendix A.
4 pages (1000 words) Essay
Taking the Steps towards Economic Stability
Basically, even the ordinary people when thinking of payment people tend to worry so much. Money talk is really a very complex topic. There are so many things that you have to consider. There are lots of conditions that need to face. Balance of payment is a wide varying area that needs to discuss especially by the government.
10 pages (2500 words) Essay
Business Financing and the Capital Structure
The process of financial planning for a business corporation includes a method of assessment of the current value of the company, evaluation of the present value of assets of the company, estimated growth of assets of the company and anticipated expenses of the company in future.
4 pages (1000 words) Essay
Business Financing and the Capital Structure
The process of financial planning adopted by corporations include a method of evaluating the present value of the company, expected growth of assets anticipated future expenses. Working capital management Working capital management involves maintaining optimum level of current assets and cash by the corporation in order to meet the short term liabilities.
3 pages (750 words) Essay
Assignment 2: Business Financing and the Capital Structure
The process of financial planning for asset investment requirements is referred to as the capital budgeting process. First step in the process is to determine the possible investment alternatives that would address the need of the business. After identifying the likely options, the corresponding costs (purchase and installation) and the possible income streams into the future should be estimated, taking note of the years during which they are expected to materialize.
3 pages (750 words) Assignment
Business Financing and the Capital Structure
Alternatively, the financial planning helps corporations to estimate asset investment requirements in order to achieve long term objectives. Financial planning activity starts from the analysis of business environment and feasibility of business model. Then it identifies the sources needed to achieve these objectives in monetary units by quantifying scarce resources such as raw materials for production process, labor, necessary equipments, inventory, and so on.
5 pages (1250 words) Assignment
Business Financing and Capital Structure
The statements may be prepared in certain future period and enable the manager fund required. ?The funds required are determined: after drawing the projections in terms of marketing activities, sale of products and the production cost, finance manager draws up a plan of the required funds depending on the time factor.
4 pages (1000 words) Research Paper
Business Financing and the Capital Structure
Lastly, the firm will decide which method of financing the organization will use to acquire the necessary assets to meet with production demands. Consequently an organization can use the available information in order to create the projected income statements and balance sheets as well as estimating the earnings per share, dividends per shares, as well as forecasting key financial ratios and measures in order to determine the viability of the new project.
3 pages (750 words) Essay
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT