FINC615 Unit 3- Individual Project

A company's cost of capital refers to Multiple Choice O O the rate management expects to pay on all borrowed and equity funds. the total cost of a capital project. cost of printing and registering common stock shares. the rate of return earned on total assets.

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1. Capital allocation process The capital allocation process involves the transfer of capital among different entities that include individuals, small businesses, banks, financial intermediaries, companies, mutual funds, and other market participants. In a developed market economy, capital flows freely between entities that want to supply capital to those who want it. This flow of capital can be classified in three ways. In the table below, identify the nature of capital transfer given in the scenario with its appropriate classification: Indirect Transfers Indirect Transfers Direct Transfers through Investment Banks through Financial Intermediaries Scenario California Public Employees' Retirement System (CalPERS) manages pension and health benefits of California public employees and retirees. CalPERS collects money from its participants and creates a pool of assets. It manages these assets by making investments across domestic and international markets. Based in Grass Valley,…

The cash flow that is available for distribution to a corporation's creditors and stockholders is called the: Multiple Choice operating cash flow. net capital spending. net working capital. cash flow from assets. cash flow to stockholders. 5 8 A

FINANCE2A First Question

What is meant by Capital Structure of a company? In this context, describe the varioussources of funding available to companies.

Capital allocation process The capital allocation process involves the transfer of capital among different entities that include individuals, small businesses, banks, financial intermediaries, companies, mutual funds, and other market participants. In a developed market economy, capital flows freely between entities that want to supply capital to those who want it. This flow of capital can be classified in three ways. In the table below, identify the nature of capital transfer given in the scenario with its appropriate classification: Scenario Direct Transfers Indirect Transfers through Investment Banks Indirect Transfers through Financial Intermediaries Elliot invests $25,000 by purchasing 1,000 shares of an emerging markets mutual fund. This mutual fund invests in companies in Brazil, India, and China. He bought the mutual fund from the mutual fund company.         Steve’s grandfather loans him $30,000 to start a small coffee shop in the East Village in…

Using this link: https://massygroup.com/wp-content/uploads/2022/11/MASSY-DIGITAL-ANNUALREPORT-2022-updated.pdf answer the following questions Working Capital Management: a) Assess the company’s working capital position by analyzing its current assets and liabilities using common methods and measures.  b) Evaluate the efficiency of the company’s working capital management strategies, including inventory management, accounts receivable, and accounts payable.  c) Based on your assessment and evaluation above, provide brief recommendations in point form for improving the company’s working capital management practices.

True or false

14. 1.4 All of the following are sustainable methods businesses can use to raise capital (funding) except for ________. A. borrowing from lenders B. selling ownership shares C. profitable operations D. tax refunds

8. Which of the following types of assets are intangible? A. production machineryB. office equipmentC. factoriesD. trademarks 9. The choice of the proper mixture of debt and equity, used to finance a corporation, is also referred to as the A. capital budgeting decision.B. capital structure decision.C. investment decision.D. liquidity decision. 10. As a legal entity, a corporation can perform the following functions EXCEPT: A. vote.B. borrow money, lend money, sue and be sued, and vote.C. borrow money and lend money.D. borrow money, lend money, and sue and be sued.

Which of the following is a working capital management issue? O A. The choice of which long-term assets to purchase to meet the firm's business goals. O B. The appropriate amount of cash to hold. C. None of the above is a working capital management issue. O D. The proper mix of stocks and bonds to issue for financing assets.

The financial manager has determined the following schedules for the cost of funds: Cost of the Ratio               Cost of Debt                           Equity 0%                                            5%                                       13% 10                                             5                                          13 20                                             5                                          13 30                                             5                                          13 40                                             5                                          14 50                                             6                                          15 60                                             8                                         16   a. Determine the firm’s optimal capital structure. b. Construct a simple pro forma balance sheet that shows the firm’s opti- mal combination of debt and equity for its current level of…