Explain with examples how the cost of capital is determined

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Reference no: EM131740534

Discussion 1-Managing Finance

The Genesis Energy operations management team was excited to understand the various options for securing financing to fund the rapid growth plans. The team was surprised by the cost associated with using funds supplied by others after accounting for risk of investments in its small but profitable company. Sensible Essentials explained how the cost of external financing can be calculated.
Using the readings for the module, Argosy University online library resources, the Internet, and the sources you identified in Module 3, do the following:

• Explain with examples how the cost of capital is determined.

• Calculate the differences in cost and risk. Explain why the costs and risks of external financing are important for the organization to understand.

• Explain why rapid growth plans are important to a small company. Would there be a more efficient way to fund a growing company? Why or why not? Justify your answer.

Post your response to the Discussion Area. Through the end of the module, review and comment on at least two peers' responses.

Write your initial response in 300-500 words. Your response should be thorough and address all components of the discussion question in detail, include citations of all sources, where needed, according to the APA Style, and demonstrate accurate spelling, grammar, and punctuation

Do the following when responding to your peers:

• Read your peers' answers.
• Provide substantive comments by

o contributing new, relevant information from course readings, Web sites, or other sources;
o building on the remarks or questions of others; or
o sharing practical examples of key concepts from your professional or personal experiences

• Respond to feedback on your posting and provide feedback to other students on their ideas.
• Make sure your writing

o is clear, concise, and organized;
o demonstrates ethical scholarship in accurate representation and attribution of sources; and
o displays accurate spelling, grammar, and punctuation.

Discussion 2-Ethical, Social, and Political Issues

Information is data that is framed in a specific context. In this sense, information is contextual data that has a level of inherent value. Data might be the binary 0s and 1s on a hard drive, but information is the combination of that binary data into a document, media file, or database. Therefore, information systems are methods of managing the value of different types of data. The value of the data might be in the personal records such as social security number, addresses, or shopping habits that are linked together to form an online shopping cart and on-click purchasing. The value of information provides for the potential for ethical, social, and political issues within an organization. An example of these ethical, social, and political issues can be found in the concept of privacy.

Using the module readings and the Argosy University online library resources, research the ethical, social, and political issues within an organization, and explain each of the issues.

Respond to the following:

• What ethical, social, and political issues arise with the use of information systems?
• Which of these identified issues can have the most adverse effect on an organization if not managed properly?

Post your response to the Discussion Area. Through the end of module,review and comment on at least two peers' responses.

Write your initial response in 300-500 words. Your response should be thorough and address all components of the discussion question in detail, include citations of all sources, where needed, according to the APA Style, and demonstrate accurate spelling, grammar, and punctuation

Do the following when responding to your peers:

• Read your peers' answers.
• Provide substantive comments by

o contributing new, relevant information from course readings, Web sites, or other sources;
o building on the remarks or questions of others; or
o sharing practical examples of key concepts from your professional or personal experiences

• Respond to feedback on your posting and provide feedback to other students on their ideas.
• Make sure your writing

o is clear, concise, and organized;
o demonstrates ethical scholarship in accurate representation and attribution of sources; and
o displays accurate spelling, grammar, and punctuation.

Reference no: EM131740534

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