Assignment on risk analysis

Reference no: EM13745498

Assignment: Risk Analysis

All businesses have associated risks. Businesses must cope with risk in order to operate. The risks can be minimized when you are certain of the outcome and can be maximized when there are uncertainties. The internal and external factors also impact risk. With all other factors held constant in financial markets, the higher the risk associated with the decision, the higher the expected return. Many investors are risk averse especially when dealing with their investments.

In this assignment, you will discuss risks and risk aversion. You will also explore your natural risk tendencies and discuss how you would react to specific financial decisions that you may encounter, personally and professionally.

Tasks:

Complete the following:

Determine the cost of debt and equity for your chosen US publicly traded company using the techniques presented in chapters 5 and 6 of your textbook, The portable MBA in finance and accounting (4th ed.). Show your work.
Determine what the weighted average cost of capital (WACC) is for your chosen company.
In 300 words or less explain why the weighted average cost of capital is important to managers, investors, and creditors of the company.
Determine what, in your opinion, the optimal mix of debt and equity is for your company. What benefits should an optimal mix produce for shareholders (owners)? Explain in detail.

Write a 2-3-page research paper. Apply APA standards to citation of sources.

Reference no: EM13745498

Questions Cloud

Describe the structure of the ecosystem : Investigate the biotic and abiotic structure and function of an ecosystem and Describe the structure of the ecosystem

What is walt disney company''corporate strategy : What is Walt Disney Company's corporate strategy? What is your assessment of the long-term attractiveness of the industries represented in Walt Disney Company's business portfolio? What is your assessment of the competitive strength of Walt Disney Co..

Different types of foreign exchange exposure : Summarize different types of foreign exchange exposure faced by the MNC. Identification and measurement of these risks. Explain the structure of international financial markets and institutions and the range of instruments traded therein.

Pattern of losing genes : What is it about the y chromosome that suggests that it will not go extinct despite its pattern of losing genes

Assignment on risk analysis : All businesses have associated risks. Businesses must cope with risk in order to operate. The risks can be minimized when you are certain of the outcome and can be maximized when there are uncertainties.

Explain the decade of advanced strategic planning : More than any other.. this second decade of our new millennium looks set to be the decade of advanced strategic planning . During this second decade businesses will continue to compete tooth and nail.

Three basic approaches for competing internationally : Textbook figure 7.2 depicts the three basic approaches for competing internationally. The textbook describes these three different approaches along with the accompanying concepts and individualized strategies that typify those approaches (see also Ta..

Main differences between financial management and accounting : Discuss the goals of financial management and of accounting for this health care setting. What are the main differences between financial management and accounting

The environment and the strategic business plan : 1.What is the relationship between the environment and the strategic business plan? 2.What is the relationship between the firm's resources and the strategic business plan?

User Account

All Pages