Do you agree or disagree with this statement? In your own words, give reason or reasons to support your answer taking into consideration the possible consequences of the cash being provided by any of the other two activities over the long run.
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In comparison to investing and financing activities, it is often said that cash from operating activities must be the main source of cash to achieve long term success of the company. Do you agree or disagree with this statement? In your own words, give reason or reasons to support your answer taking into consideration the possible consequences of the cash being provided by any of the other two activities over the long run.
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- Perform the task below. Suppose you have savings in the bank that you want to invest in stocks and bonds instead of setting up in a new business. Write one to two paragraphs discussing what method you can use to make the investment and explain the reasons for your decision.With the success of your business, you are ready to establish a storefront. However, you do not have the necessary funds to acquire the building and pay the necessary rent. You are considering borrowing a short-term note from a bank for $130,000. Required part B. Research the lending practices of a local bank. Determine the interest rate charged for a $130,000 loan. What collateral does the bank require to secure the loan? Determine your overall payback amount if you were to repay the loan in less than one year. Choose either a payback with periodic payments or all at the end of the loan term and compare the outcomes. After conducting your research, would you consider borrowing the money? What positive and negative outcomes accompany borrowing the money? Instead of borrowing on a short-term note, you are thinking on borrowing $130,000 and signed a 5-year, note payable with a 12% interest rate. Each annual payment is in the amount of $34,920 and payment is due each Dec. 31. What is…Consider a business idea that you could imagine starting up in your local area. Explain what source or sources of funding might be available to you, approximately how much money you think you would need, and why you would choose that particular source or sources. How would you convince the potential funder or funders that they should invest in your idea?
- Think about the factors involved in each of the situations below. Solve the problems by applying the concepts in Chapter 18. Where can your firm find financing? Prepare your initial discussion by providing a detailed response with at least three paragraphs. Your company needs a new copy machine quickly. The high-volume, multifeatured model you want costs $3,000, but your small business doesn’t have that much cash on hand right now and doesn’t want to borrow at this time.You have just received a business valuation report that is dated six months ago. Describe the factors that might have changed during the past six months and, therefore, caused the value of the business today to be different from the value six months ago. Which of these changes affect the expected cash flows, and which affect the discount rate that you would use in a discounted cash flow valuation of this company?Read the article “How To Overcome The Fear Of Investing In The Stock Market” on the College Investor website and answer the following questions. Please provide explanations for your answers. Do you fear investing? If yes or no, explain why. Can an effective asset allocation strategy assist in overcoming the fear of investing? In your opinion, which is worse – not investing at all or investing close to retirement?
- Financial planning is an essential aspect of both personal and business management, providing a roadmap for achieving monetary objectives and ensuring long-term financial stability. On a personal level, effective financial planning involves budgeting, saving, and investing to meet short-term needs and long term goals such as homeownership, education, or retirement. For businesses, financial planning encompasses budgetary control, cash flow management, and investment strategies to support growth and sustainability. A well-crafted financial plan helps individuals and organizations prioritize spending, allocate resources efficiently, and build a financial cushion for unexpected expenses. It also facilitates informed decision-making by offering insights into the financial implications of various choices. Ultimately, financial planning is a dynamic process that evolves with changing circumstances, requiring regular review and adjustments to ensure continued success. Question: How does…Explain the role of finance and the different types of jobs in finance. Identify the advantages and disadvantages of different forms of business organization.Choose a publicly-traded company, and then estimate your company's common stock price, using one of the valuation models presented in the assigned readings or outside readings. (If you want to analyze a dividend paying company, you can find a robust list at http://www.dividenddetective.com/big_dividend_list.htm.) Defend your choice of model, and explain why it is appropriate to use for your company's stock. Be sure to explain how you arrived at any assumptions regarding values used in the model. Determine whether your company appears to be correctly valued, overvalued, or undervalued based on your company's stock current price and model result. Check Yahoo Finance for current stock prices. Finally, explain why your company's stock appears to be over-, under-, or correctly valued.
- A company has $500 million in total assets, $10 million in notes payable, and $45.6 million in long-term debt. What is the debt ratio?.Assume that you are the manager of a company and there are bad news for investors. What day of the week would you prefer to release this information so as to minimize impact on prices of your company? Explain your answerAssume that you are a financial advisor to the CEO of a large conglomerate that has various business lines in the agriculture and energy industries. The company is in preparation to build an energy plant that will need to be funded in the next year with the total amount of $200,000,000. a) In order to fund this amount, what would you suggest to the CEO regarding the variety of resources the company can use under different economic conditions / business cycles? WHY? Discuss in detail. b) Discuss the pros and cons of the suggested resources comprehensively.
