Reference no: EM13754311

Assignment 1: Discussion-Research Topics on Managerial Problems

Based on your business experience and the information accumulated in this class, identify three possible research topics related to the subject of the course.

• Describe the managerial problems or opportunities each of the three topics address?
• Provide a short description for each research topic, highlighting:  
  • The problem or opportunity in organizations that needs to be addressed
  • The purpose of the research
  • The question(s) that, if answered, will help in solving the problem or seizing the opportunity

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

Assignment 2: 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.