A business that is expanding is considering using debt to fund the planned projects. They plan to arrange the financing first and then consider the expansionary projects once they know what money is available. Comment on this adopted strategy in view of your understanding of the financing decision and investment decision that a modern financial manager is faced with in contemporary business.

Detailed answer

A financial services company is considering investing in a new fintech startup that has developed a new technology platform for investment management. The company is concerned about the risks associated with the investment and wants to evaluate the potential return on investment. You have been hired as a consultant to help the company make an informed decision. Which of the following financial ratios would be most appropriate for the financial services company to evaluate the financial health and performance of the fintech startup?    Gross profit margin    Debt-to-equity ratio    Return on investment (ROI)    Price-to-earnings (P/E) ratio

All of the following statements concerning a SWOT analysis are correct EXCEPT a. once the strengths, weaknesses, opportunities, and threats are identified, the planner systematically analyzes the SWOT to select the optimum financial strategy b. appropriate consumption and savings behaviors are examples of client strengths c. financial ratios that do not meet recommended levels are examples of client weaknesses d. technological breakthroughs, governmental controls, and emergence of new industries are examples of external environmental opportunities

When beginning a new firm, have a strategy for financing it.

The nature of financing is different for different stages of financing. Choose one of the stages below that describes the nature of financing for the stage. “Funds are likely to pay for initial marketing and product refinement.” Group of answer choices a. Seed-Money Stage b. Start-Up c. First-Round Financing d. Second-Round Financing