Week 4

Week 4

Part: 1

Explain why time might play a significant role during low-interest periods in a decision of whether to choose a private placement or public sale.

Note – Please note that the requirement is to post your response (250 words). Make sure you write these answers by conducting some research and cite both textbook and external credible sources.

Part: 2

Please answer the following Questions(Each 175 words).

1. Explain why the required rate of return on a firm’s assets must be equal to the weighted average cost of capital associated with its liabilities and equity.

2. Which is easier to calculate directly, the expected rate of return on the assets of a firm or the expected rate of return on the firm’s debt and equity? Assume that you are an outsider to the firm.

3. What factors must a financial manager consider when making decisions about accounts receivable?

4. List some of the working capital management practices you would expect to see in a manufacturing company following just-in-time inventory practices.

5. Define underpricing, and explain why the majority of IPOs are underpriced. What role do investment banks play in the price-setting process?Note:

– Be typed, double spaced, using Times New Roman font (size 12), with one inch margins on all sides and heading; citations and references must follow APA format. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date.