5111 discussion unit 7

Hi! I'm having difficulty comparing the choices between raising a large amount of cash in the capitaal market verses the bond market. I have to make a decision as to what is best and why, all while considering ethical implications of financial reporting and how it relates to acquiring additional investors and accessing markets for additional capital. Consider the impact on the following on your choice: The company’s existing capital structure The company’s current market capitalization The company’s weighted average cost of capital The company’s degree of operating, financial and combined leverage

What is the important question of corporate finance when a finance manager advises the company’s management to accept or reject a long-term investment project? What the finance manager needs to analyse to justify her/his adviceHow a corporation is different from a partnership in terms of owner, legal status, liabilities, life, regulation, access to capital, taxation and transfer?

Expert of general account answer me

Which statement(s) below is (are) correct relative to investment companies? (select all that apply) The shares of an investment company will always trade at their NAV. O An investment company enables investors to pool their money with other investors to make diversification more affordable and manageable. O An investment company keeps track of all purchases and sales, of constituent assets, for tax purposes. The shares of an investment company are always redeemable at the fund company who issued the original shares.

Financial Account questions.

If managers of a company have inside information about the company’s future performances and such inside information is unknown to outsiders, then the company’s managers are most likely to use _____ to finance its project investment Group of answer choices a. the company’s retained earnings b. debt borrowing from banks c. share issuance to new investors d. there is no difference among the above three funding options

Which of the following is an advantage of equity financing over debt financing? a. Equity financing provides necessary capital more quickly than a loan. b. The original partners can maintain total control of the company. c. It is possible to raise more money than a loan can usually provide. d. Debt financing is reserved for large corporations with a history of high profits.

Sub. FINANCIAL ACCOUNT

A.  Describe the differences in the underwriting process for an Investment Bank between a “firm commitment” securities offering and a “best efforts” offering. B.  If you were the Chief Financial Officer of a public company that was issuing new common stock, which type of underwiring would you prefer, and why?

Determine whether it is common stock, preferred stock, or bonds that has the feature best related to the following considerations. a. Ownership and control of the firm b. Obligation to provide return c. Claims to assets in bankruptcy d. High cost of distribution e. Highest return f. Highest risk g. Tax-deductible payment h. Payment partially tax-exemptto corporate recipient

A bank that seeks to increase its risk-adjusted capital ratio has a number of options at its disposal including: Issue new equity, such as through a rights issue to existing shareholders, an equity offering on the open market, or by placing a bloc of shares with an outside investor. Increase retained earnings by reducing the share of its profit it pays out in dividends. Reduce its risk-weighted assets by replacing riskier loans with safer ones or with government securities. Chose 1 option from below:Only I is correct. Only II is correct. I and II are correct. Only III is correct. I, II and III are correct.   Thanks!

Multiple Choice Questions:  Which of the following assist companies in raising capital, advise firms on major transactions such as mergers or financial restructuring, and engage in trading and market making activities? Investment Banks Securities Exchanges Mutual Funds Commercial Banks

Which of the following statements correctly describes the nature of direct financing as discussed in lectures? Group of answer choices A. More than one of the other answers is correct B. It is the source of financing whenever an investor purchases shares that are listed on the Australian Securities Exchange. C. None of the other answers is correct D. May involve an individual investor buying shares in a company when a company goes public via an initial public offering. E. It relies upon an intermediary to facilitate the flow of funds from surplus to deficit units, unlike indirect financing   I answered D, is it correct?

A common problem facing any business entity is the debt versus equity decision. When funds are required toobtain assets, should debt or equity financing be used? This decision also is faced when a company is initiallyformed. What will be the mix of debt versus equity in the initial capital structure? The characteristics of debt arevery different from those of equity as are the financial implications of using one method of financing as opposedto the other.Cherokee Plastics Corporation is formed by a group of investors to manufacture household plastic products.Their initial capitalization goal is $50,000,000. That is, the incorporators have decided to raise $50,000,000 toacquire the initial assets of the company. They have narrowed down the financing mix alternatives to two:1. All equity financing2. $20,000,000 in debt financing and $30,000,000 in equity financingNo matter which financing alternative is chosen, the corporation expects to be able to generate a 10% annualreturn, before…

As a micro-enterprise, which sets of financing are the most likely to be used? *A. Banks and venture capitalistsB. Tax holidays and leasesC. Retained earnings and convertible securitiesD. Public issuance of equity and debt

Which of the following statement is INCORRECT?   Question 20 options:   1)  The finance manager manages the short-term balance sheet items of the company, such as current assets and current liabilities.   2)  The finance manager uses investment evaluation techniques to decide whether to purchase fixed assets.   3)  The finance manager seeks to maximise the firm’s wealth when deciding on the choice of capital sources such as debts and equity.   4)  The right-hand side of the balance sheet refers to the company’s investment decisions to buy fixed assets to generate returns.