Order Number |
656854595 |
Type of Project |
ESSAY |
Writer Level |
PHD VERIFIED |
Format |
APA |
Academic Sources |
10 |
Page Count |
3-12 PAGES |
Assume the chief financial manager for your public company has requested you prepare a PowerPoint presentation, which will be used to develop the structure of the optimum resource for your organization for the future. In the report, you are to address each of the critical considerations below for inclusion of a specific level of debt and equity to create the structure of the optimum resource for the balance sheet.
Create a PowerPoint presentation by incorporating explanatory notes below each slide, and then, develop a report on the financing decision that a publicly-traded corporation faces. Be sure your report addresses each of the following:
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Evaluate the leverage implications of using different levels of debt to finance an organization. Include as a chart illustrating the impact of an increasing debt ratio on ROE (return on equity) for a given ROA (return on assets) and on risk, as represented by an increase in debt costs.
Explain the expected impact and importance of including each of the following in the capital structure debate: signaling theory, the constraining managers’ theory, the pecking order hypotheses, and the windows of opportunity theory.
Compare and contrast the level of debt choices that organizations tend to make during times of growth in GNP (Federal Reserve rates are relatively low) and times of GNP contraction (The Federal Reserve usually will increase interest rates in times of inflation, leading to a contraction in GNP usually). How do these choices often differ across a high growth industry (health care, energy, and high tech) and low growth industry (food, utilities)?Length: 4 slides, not including title and references slide
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References: Include a minimum of 3 scholarly resources.
Your presentation should demonstrate thoughtful consideration of the ideas and concepts that are presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect graduate-level writing and APA standards.