Marginal cost of capital

Managerial Finance

Respond to the following scenario with your thoughts, ideas, and comments. Be substantive and clear, and use research to reinforce your ideas.

Mary Francis has just returned to her office after attending preliminary discussions with investment bankers. Her last meeting regarding the intended capital structure of Apix went well, and she calls you into her office to discuss the next steps.

“We will need to determine the required return for our intended project so that we have a decision criteria defined for the project,” she says.
“Do you have the information I need to describe capital structure and to calculate the weighted average cost of capital (WACC)?” you ask.
“I do,” she smiles. “We can determine the target WACC for Apix Printing Inc., given these assumptions,” she says as she hands you a piece of paper that says the following:

  • Weights of 40% debt and 60% common equity (no preferred equity)
  • A 35% tax rate
  • Cost of debt is 8%
  • Beta of the company is 1.5
  • Risk-free rate is 2%
  • Return on the market is 11%

“Great,” you say. “Thanks.”
“Be sure to indicate how these costs of capital might be used to determine the feasibility of the capital project,” Mary says. “I want your recommendation about which is more appropriate to apply to project evaluation, too. Let me know what you think.”
“One more thing,” she says as she stands up to signal the end of the meeting. “You did a good job with the explanations that you provided Luke the other day. Would you have time to define marginal cost of capital for me so I can include it in my discussions with investors? You seem to have a knack for making things accessible to nonfinancial folks.”
“No problem,” you say. “I’m glad my explanations are so useful!”

For this assignment, complete the following:

  • Describe capital structure.
  • Determine the WACC given the above assumptions.
  • Indicate how these might be useful to determine the feasibility of the capital project.
  • Recommend which is more appropriate to apply to project evaluation.
  • Define marginal cost of capital.

Please submit your assignment. Please include references.

Lehman Brothers Bankruptcy

Literature Review for Lehman Brothers Bankruptcy Paper

Looking ahead to your Week 8 Assignment, please conduct preliminary research on the 2008 Lehman Brothers Bankruptcy and its various effects on world financial markets, business management, the credit crisis and individual wealth. Your research and resulting reviews should be based on five unique aspects and/or results of this event. You will then submit a Literature Review for each of the five resources. Completion of the Literature Reviews will prepare you for the Week 8 Assignment and will be used in your paper.

Create a Literature Review in which you:

  • Locate and review five quality academic resources using the Strayer University Library (avoid using a Google search). Each resource should be based on a separate topic that addresses a unique or disparate effect of the Lehman Brothers bankruptcy. (Resources attached)
  • Prepare a brief 200-250 word review for each of the five resources you have chosen.
  • Ensure that your reviews have clearly stated and focused themes.
  • Ensure that your reviews contain a conclusion, recommendation or observation about the topic you selected.

Organizational Performance

Using Financial Ratios to Assess Organizational Performance

Using the financial statements from your selected health care organization in Assignment 1, develop a financial plan for the next three (3) years.

Write a four to five (4-5) page paper in which you:

Suggest the financial ratio that most financial analysts would use to evaluate the financial condition of the company. Provide support for your rationale. Speculate on the organization’s ability to meet its financial obligations as they come due. Provide support for your rationale. Based on your ratio analysis, determine whether the profitability trends are favorable or unfavorable and explain your rationale. Using financial ratio analysis, predict whether or not the company will be viable in five (5) years based on its performance over the past three (3) years. Provide support for your prediction. Use at least two (2) quality academic resources. Note: Wikipedia and other Websites do not qualify as academic resources. Your assignment must follow these formatting requirements:

Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length. The specific course learning outcomes associated with this assignment are:

Evaluate the financial statements and the financial position of health care institutions. Describe the overall planning process and the key components of the financial plan. Use technology and information resources to research issues in health financial management. Write clearly and concisely about health financial management using proper writing mechanics.

Cost Control Flowchart

BIS/303 week 3 Cost Control Flowchart and Summary

Choose from one of the two options below to create a flowchart, and then complete a summary on cost controls and resource management systems.

Use either Microsoft® Word, Microsoft® PowerPoint®, or Visio® to build the flowchart.

Option 1

Point-of-Sale (POS) and Inventory Tracking Flowchart

  • Develop a flowchart that illustrates how an IT system organizes customer transactions for accounting processes and reports.
  • In 350 words, explain how the POS system and inventory tracking system integrate operations and accounting systems.

Option 2

Production Systems and Management Controls Flowchart

  • Demonstrate with a flowchart how a customer transaction works from the front end to the back end.
  • In 350 words, explain how production systems and management controls work together to increase efficiency.

No matter which option, also write a 700-word summary that explains accounting control strategies in relation to the degree of hospitality technology investment.

  • Compare how point-of-sale tracking systems and inventory tracking systems work together in the hospitality industry.
  • Examine how hospitality accounting strategies relate to investment.
  • Analyze how accounting control strategies affect the productivity of point-of-sale, inventory tracking, production systems, and management controls.
  • Compare the features and benefits of internal property management systems with external global distribution systems. Which one offers the best overall competitive advantage, and why?

Format your paper according to APA guidelines.

Multinational Capital Structure

Multinational Capital Structure and Optimal Capital Structure

From the case study and your knowledge of both the cost of capital and capital structure for MNCs, predict the likely outcome of a Blades expansion into Thailand. Determine whether Blades’ cost of capital will be higher or lower than it would be for a manufacturer operating solely in the U.S. Provide a rationale for your response.

•From the case study and the readings, predict the major effects of an expansion of Blades into Thailand on the required rate of return for the company. Suggest whether or not Blades should use the new required rate of return, which entails using the capital asset pricing model (CAPM) when discounting the cash flows from the Thai subsidiary to determine the net present value (NPV) of a project there. Provide a rationale for your response.

Sustainability proposal

Sustainability proposal

Local government leaders have asked you to provide information and recommendations for increasing sustainability in the community.

Perform an initial search to learn about green initiatives for a city in your area.

Create a 5- to 8-slide PowerPoint® presentation or Write a 350- to 525-word proposal to your local government.

Include the following:

  • A summary of green initiatives for a city in your area.
  • Recommendations to your local government for creating a greener, more sustainable and livable community.
  • The proposal should include recommendations both for actions by the local government and by individual homeowners.
  • Explain how implementing these recommendations would promote sustainability and improve like for residents.

Include appropriate images.

Include a list of the sources you use.

Format your presentation consistent with APA guidelines.