Do the following to complete this assignment: Explain the cost of capital and how it is determined. Explain the concept of the optimal capital structure and how it can be determined. Explain the concept of financial leverage and analyze how it can affect capital structure decisions. Provide an example of a highly leveraged firm and estimate the leverage’s effect when the firm is doing well, and when there is a downturn in sales.

Does the government have an ethical obligation to provide some form of healthcare for its citizens? Identify the key features of the Affordable Care Act in the United States as well as the key features of healthcare proposals or systems in one other country. In what ways do these features reflect a continuation of the existing system? In what ways would they represent a significant overhaul?
April 17, 2020
Demographics and Community Resources In Section 1 of your course project, Demographics and Community Resources, you will: · Identify the demographics and resources available that can be used to support your mission and purpose for your community organization, and create a list of these available resources. · Analyze how resources and demographics can affect your community organization and its members. · Assess and evaluate your list of community resources to determine which resources would be the most effective. Then, use your research to justify the purpose of your community organization. Determine whether it is an area in which you can establish a new program to meet a specific community need. Acknowledge long-term sustainability.
April 17, 2020

Do the following to complete this assignment: Explain the cost of capital and how it is determined. Explain the concept of the optimal capital structure and how it can be determined. Explain the concept of financial leverage and analyze how it can affect capital structure decisions. Provide an example of a highly leveraged firm and estimate the leverage’s effect when the firm is doing well, and when there is a downturn in sales.

The Cost of Capital To expand operations, firms often require more funds than can be generated from operations. These additional funds require a long-term source of capital. There are two primary means of raising the required additional funds: borrowing the funds (bonds), or selling ownership (stock shares). There is a cost to the firm of raising capital using either method. The firm expects to receive a financial benefit from the assets acquired with the raised capital. To ensure the benefit outweighs the cost of the capital, the firm must determine with some accuracy the cost of the capital and compare it to the benefit to be received. Determining the cost of borrowing is straightforward. Calculating the cost of selling shares in the firm is more complex. Do the following to complete this assignment:

  • Explain the cost of capital and how it is determined.
  • Explain the concept of the optimal capital structure and how it can be determined.
  • Explain the concept of financial leverage and analyze how it can affect capital structure decisions.
  • Provide an example of a highly leveraged firm and estimate the leverage’s effect when the firm is doing well, and when there is a downturn in sales.
Write a 2–3-page paper in Word format. Utilize at least three scholarly sources in your research. Make sure you write in a clear, concise, and organized manner; demonstrate ethical scholarship in accurate representation and attribution of sources; and display accurate spelling, grammar, and punctuation. Use the APA format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M6_A2.doc. By  April 9, 2016, deliver your assignment.

The Cost of Capital

To expand operations, firms often require more funds than can be generated from operations. These additional funds require a long-term source of capital. There are two primary means of raising the required additional funds: borrowing the funds (bonds), or selling ownership (stock shares). There is a cost to the firm of raising capital using either method. The firm expects to receive a financial benefit from the assets acquired with the raised capital. To ensure the benefit outweighs the cost of the capital, the firm must determine with some accuracy the cost of the capital and compare it to the benefit to be received. Determining the cost of borrowing is straightforward. Calculating the cost of selling shares in the firm is more complex.

Do the following to complete this assignment:

  • Explain the cost of capital and how it is determined.
  • Explain the concept of the optimal capital structure and how it can be determined.
  • Explain the concept of financial leverage and analyze how it can affect capital structure decisions.
  • Provide an example of a highly leveraged firm and estimate the leverage’s effect when the firm is doing well, and when there is a downturn in sales.

Write a 2–3-page paper in Word format. Utilize at least three scholarly sources in your research. Make sure you write in a clear, concise, and organized manner; demonstrate ethical scholarship in accurate representation and attribution of sources; and display accurate spelling, grammar, and punctuation. Use the APA format.

Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M6_A2.doc.

By  April 9, 2016, deliver your assignment.


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