Business financing and the capital structure
Businesses have to make many financial decisions that have a direct impact on operations and the ability to successfully compete in the marketplace. Base your writing on the information from the course coupled with information located in the Strayer databases or Internet.
Write a 3-4 page paper in which you:
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.
2. Assume that you are financial advisor to a business. Describe the advice that you would give to the client for raising business capital using both debt and equity options in today’s economy.
3. Explain why a business may decide to seek capital from a foreign investor indicating the risk and rewards for such a decision. Provide support for rationale.
4. Explain the historical relationships between risk and return for common stocks versus corporate bonds. Explain how diversification helps in risk reduction in a portfolio. Support response with actual data and concepts learned in this course.
5. Use at least one (1) quality references. Note: Wikipedia and other Websites do not quality as academic resources
The specific course learning outcomes associated with this assignment are:
• Describe the characteristics and valuation of stocks and bonds, and how each is a key component in the financing of corporations.
• Describe the key elements of the securities markets, and how the markets drive financial transactions, decision making, and risk analysis.
• Use technology and information resources to research issues in finance.
• Write clearly and concisely about finance using proper writing mechanics.
Your assignment must follow the formatting requirements outlined below:
File naming convention:
Written assignment should be prepared using Microsoft Word and named as follows:
FIN100_Wk8_Financing and the Capital Structure_Your Last Name
Paper Format (APA style, 6th edition):
– Written assignments should be completed using Microsoft Word (*.doc or *.docx file extension) and submitted as an attachment by clicking on the assignment link under the appropriate weekly unit following the proposed naming convention.
– Type the question (in bold fonts) followed by your answer (do not bold) to the question. Do not bold your answer.
– Assignment must be typed using, 8 ½ x 11 inch paper format.
– Paper should be double spaced with 1 inch margins on all four sides of each page.
– The recommended font is Times New Roman.
– Font size is 12.
– Formal APA style title page with Running head and page number required to prepare your assignment (see sample APA paper, APA Manual, 6th ed. p. 41).
– Title page should contain the Title of the assignment, your full name, complete Course title, name of your University, the Instructor’s name, and the current (submittal) Date.
– Number every page according to APA style with Running Head, beginning with page 1, at the top right in the Header of the page; Page number(s) (in Arabic numerals) should be entered in the Header area same line of the running head; align next to the Right margin.
– Indent 5 spaces to indicate a new paragraph.
– Paper may not contain multiple designs (types) and sizes of fonts. Use only one design, color (black), and size of font throughout the paper.
– All academic papers must include an APA style ‘References’ page with matching in-text citations for all the resources used to prepare/write the paper.
– Abstract and table of contents are not required for this APA standard paper.
– If included, all table(s), figure(s) and appendix(es) should be appropriately labeled in accordance with APA manual, 6th edition.
Special Instructions:
– Contractions are words such as don’t, can’t, haven’t, won’t, isn’t, it’s, and all those with an apostrophe that make one word out of two. Avoid contractions; write them out (for example, do not, cannot).
– Avoid using first and second person singular number (I, me, you or your) in your writing. Use of we and our or ours are most appropriate. It is best practice (prudent) in academia for students to include their audience (especially classmates).
– Please be cognizant of the points (240 points) allocated for these assignments. For high scores, conduct extensive research and discuss each part of the topic/question in detail. You are encouraged to introduce supplemental research materials from Internet and other external resources (with appropriate citations and references in APA style) to your work. References (APA style) for external sources used in research must be included at the end of your paper. Acceptable external sources are peer reviewed academic journals, periodicals, books from reputable publishers, etc. However, the majority (75%+) of your response/analysis to the topic/question must be your own. You may not copy and paste directly from any external sources including Internet to prepare your entire (or majority percentage) response (even with citations). For example, if your response/analysis has total of 100 words, no more than 25 words may come from external sources as word-for-word citation.
NOTE: You will be graded on the quality of your answers, the logic/organization of the report, your language skills, and your writing skills.
