Corporate standards

Discussion question:

Complete Problem 1 on pp. 282 & 283 in Ch. 7 of Analysis for Financial Management(NOTE, YOU DO NOT HAVE TO COMPLETE THE PROBLEMS. I’LL PROVIDE THE QUESTIONS AND ANSWERS FOR YOU TO REFERENCE)


Post a clear and logical response in 150 to 200 words to the following, providing specific examples to support your answers:

  • Time value of money as it relates to questions a through i in Problem 1.
    • Why is this critical or important?
    • What things does it help up to understand?
    • How do we tie it to inflation and deflation?
    • How can it help us make better decisions?
  • Rate of return as it relates to questions j through I in Problem 1.
    • Why is ROR important?
    • How does that compare to cost of capital or other corporate standards?
  • Bank loans, bonds, and stock problems as they relate to questions p through s in Problem 1.
  • What is the significance of evaluating bank loans, bonds, and stocks?
  • How do they differ in terms of raising capital and the cost of capital?
  • Include the pros and cons of each-bank loans, bonds, and stocks.

Note: Initial answers to the questions are due by 11:59 p.m. (Eastern time) on Thursday.

Respond to at least 3 students agreeing or disagreeing. Be sure to include substantive examples that add to the post and support your agreement or disagreement. All responses must be posted by 11:59 p.m. (Eastern time) on Sunday.