Business Financing and the Capital Structure - Essay Example

Only on StudentShare

Extract of sample
Business Financing and the Capital Structure

Financial planning of the corporation would include building a plan to meet the expenses of the future through its holdings on assets after considering the predicted future cash flows and plans for withdrawal or allocation of funds. Financial planning help the corporations to understand the changes required in the areas of investment and allocation of assets in order to meet their financial goals. Thus financial planning ensures smooth transition of the financial position of the companies to attain the long term goals in future and also to meet the short term operational need. The process of financial planning is significant for the companies to attain sustainability in a competitive market (Baker and Powell, 2009). Working capital of corporations is the difference between the current assets and current liabilities of the corporation. Working capital management involves maintenance of optimum levels of both the current liabilities and current assets of the corporation. Optimum level of current asset and current liabilities indicate maintenance of sufficient current assets and cash in hand in order to meet the short term liability and expenses for daily operation in an efficient manner. The important ratios that are useful for effective working capital management are inventory turnover, account payables and accounts receivables. ...Show more

Summary

Business Financing and the Capital Structure 1. Explain the process of financial planning used to estimate asset investment requirements for a corporation. Explain the concept of working capital management. Identify and briefly describe several financial instruments that are used as marketable securities to park excess cash…
Author : nella28
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Business Financing and the Capital Structure"
with a personal 20% discount.
Grab the best paper

Related Essays

Assignment 3 for CLS325
Theorists specializing in cultural studies, as well as their followers from the halls of the academe, have persisted in presenting arguments and counter-arguments on the pros and cons in the application of the said methods; one is text-centered while the other relies much on the perception and reaction of the audience or audience-centered.
4 pages (1000 words) Coursework
Course name: Doing Business Overseas
..4 PART 2 Relationship with SAPumps…………………………………………………5 Quality Control………………………………………………………………6 Inventory……………………………………………………………………..6 Risks………………………………………………………………………….7 Price Regulation…………………………………………………………….
14 pages (3500 words) Coursework
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
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
Cash flows allow estimating the depreciated value of assets owned by a company and further requirements to contribute in effective budgeting. Capital Asset Budgeting is also practiced commonly by corporations, which is however often criticized owing to its complexities and needs for continuous record-keeping (Oracle, 2008).
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
Quantitative finance and methods ( masters degree)
Bearing in mind the correlation matrix and the likelihood ratio tests, which one variable might you consider removing and why? Considering
6 pages (1500 words) Statistics Project
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