Lesson 8 Homework
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Lesson 8 Homework
TEAM - 8
RJ LEWIS AND RAMEY LITTLE
1. Discuss the role of project accounting in project financial management.
2. Explain the difference between ‘Financing a Project’ and ‘Project Finance’.
3. What are the differences between debt financing and
equity financing?
“Debt financing refers to money borrowed from a number of sources, including banks” (Venkataraman & Pinto, 2023). We can also see the verbiage of senior debt to be referred to as debt financing in organizations too. Debt financing is important to the investor because in the case of a company not performing and needing liquidation of its assets, the investors of the debt financing or senior debt are the first to obtain their assets from the company. “
Debt financing can be riskier if you are not profitable as there will be loan pressure from your lenders” (Maverick, 2023). The reasons why a company would choose debt financing is because “a business owner does not give up any control of the business as they do with equity financing” (Mavrick, 2023).
“Equity financing refers to the money subscribed by investors and shareholders, whose returns on investment are in the form of dividends and capital growth equivalent to the value of their equity in the project organization” (Venkataraman & Pinto, 2023). From an investor’s perspective, we see payment to them to be “only after the interest and scheduled loan repayment obligations have been met” (Venkataraman & Pinto, 2023). The reasons why a company would choose to utilize equity financing “is that there is no obligation to repay the money acquired through it” (Mavrick, 2023).
Understanding the difference between the two financing models, “Debt financing involves the borrowing of money whereas equity financing involves selling a portion of equity in the company” (Mavrick, 2023). Knowing which type of finances businesses should go with all “depends on your business goals, tolerance for risk, and need for control” (Maverick, 2023). To
also consider that “debt financing can be riskier if you are not profitable as there will be loan pressure from your lenders. However, equity financing can be risky if your investors expect you
to turn a healthy profit, which they often do” (Maverick, 2023).
4. What are the various sources of finances for a project
and which ones does your company most frequently use? Why?
When it comes to the various sourcing for projects, we see that it all depends on the company structure and the complexity of projects. From the insurance industry as a large corporation, we have large complex projects that can take up to several months or years to complete. We see these projects to have “nonrecourse or limited-recourse financing (project finance)” (Venkataraman & Pinto, 2023). The reason behind these are because we have
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Related Questions
6
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Working capital management includes which one of the following?
OA. Deciding which new projects to accept
B. Deciding whether to purchase a new machine or fix a currently owned machine
OC. Determining which customers will be granted credit
OD. Determining how many new shares of stock should be issued
OE. Establishing the target debt-equity ratio
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Give typing answer with explanation and conclusion
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Block 2 2018/ 2.
What additional information does an investment grid or an investment report offer compared to the information that an addressee of the financial statements can extract from the balance sheet and the profit and loss account anyway? Does Klein OHG have to create an investment grid or an investment mirror?
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13. Investment objectives are important because they are closely tied to overall
personal financial planning and achievement of financial goals. Investment objectives
include current income, saving for major expenditures, retirement funds and
A. Tax shelters
В.
Entertainment
C. Travelling
D. Settling Debts
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. is modifying the firm's credit collection policy with its customers
Select one:
a.Financial accounting
b.Working capital management
c.Capital budgeting
d.Capital structure
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30. Financial markets:
A. facilitate the exchange of financial assets
B. provide information about prices of financial assets
C. provide a channel for funds to flow between the providers and users of funds
D. All of the given answers.
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What does each of the following definitions refer to:
The comparison of the expected future streams of earnings from a project, with the immediate and subsequent streams of expenditure.
All aspects of the administration of cash, accounts receivables, inventory, accounts payable, short term debt, accrued expenses, etc.
3. The specific mixture of long-term debt and equity the firm uses to finance its operations
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Q3
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Match the words with the term.
Question 6 options:
12345
financial need
12345
risk capital
12345
internal source
12345
external sources
12345
financing requirement
1.
working capital
2.
subordinated debt
3.
lenders
4.
short-term debt
5.
retained earnings
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1. Basic concepts
Finance, or financial management, requires the knowledge and precise use of the language of the field.
A. Match the terms relating to the basic terminology and concepts of the time value of money on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term. These are not necessarily complete definitions, but there is only one possible answer for each term.
Term
Answer
Description
Discounting
A.
A cash flow stream that is generated by a share of preferred stock that is expected to pay dividends every quarter indefinitely.
Time value of money
B.
A cash flow stream that is created by an investment or loan that requires its cash flows to take place on the last day of each quarter and requires that it last for 10 years.
Amortized loan
C.
A cash flow stream that is created by a lease that requires the payment to…
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Question 2a. Describe the advantages and disadvantages of debt capital for Howard. b. Identify five (5) ways that Howard Millard could attract the capital he needs for his business. c. What steps would you recommend he takes before approaching the sources of funding you have identified?
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Question 2a. Describe the advantages and disadvantages of debt capital for Howard.b. Identify five (5) ways that Howard Millard could attract the capital he needs for his business.c. What steps would you recommend he takes before approaching the sources of funding you have identified?
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Assess project risk in a financial analysis
discuss steps and explain importance. Will leave a thumbs up, thank you
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The work finance is defined as, except:
a. The money management and the process of acquiring needed funds
b. Allocating investors funds amongst financial assets to accomplish their objectives
c. Maximization of profits to accumulate funds and serve short-term goals of owners
d. The framework for making decisions on how funds are obtained and then invested
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Illustrate with a diagram the flow of funds from lenders to borrowers in a financial system.
Diagram must include:
Savers
Borrowers
Financial markets
Function of the financial intermediaries
Function of the financial markets
Direct finance
Indirect finance
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through payroll de
b. IRS forms used to file income taxes
C
Tax credits or deductions
d. Items included on credit reports
5. Investment Policy Statement (IPS) provides a helpful structured framework for investment
planning. The first part of an IPS lists:
a.
The investor's budget and cash flows
b. The available investments
c. Liquidity needs
d. The investor's return objective and risk tolerance
6. Bonds issued by corporations, the U.S. Treasury, state governments, city governments and
various municipalities are:
a. Equity that pays dividends
b. Debt contracts that pay interest
c. Tax-deferred
d.
Often volatile
7. An index fund is a mutual fund designed to mimic the performance of an index, a particular lis
of stocks or bonds whose performance is tracked as an indicator of an entire class or type of
in an index mutual fund is called:
Hide Transcribed Text
b. IRS forms used to file income taxes c. Tax credits or deductions d. Items included on credit reports 5. Investment Policy…
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9-
Finding out better sources of finances comes under ______________ objective of financial management
a.
Research Objectives
b.
Basic objectives
c.
Social Objectives
d.
Operational Objectives
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Hello Tutor,
Can I have assistance with creating the attached commomn statement using income and Balance sheet statements along with the interpreation. I would really appreciate it.
using the column of difference on Balance sheet and some transactions on income to determine added or subtracted and transfer to appropriate activity (operating, investing, and financing) with numbers (NO ü). Please insert more column as you need
Items
2020
2019
Difference
Added
Subtracted
Operating
Investing
Financing…
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Which of the following statements constitutes a definition of a financial plan?
Group of answer choices
Results that an individual wants to attain
2. A roadmap for achieving financial goals
3. Redefining your financial goals
4. Setting a goal date
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Important components of the financial environment and a developed financial system include:
a. Investment and financial management
b. Financial markets and bond markets
c. Security markets and financial institution
d. Financial institution & markets, investment, and financial management
Please provide me the correct answer and don't reject this question as I need a help on this important question.
&&&&&&&&&&&&#$$$$$$$$$$$$$$$$$$$$$
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help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
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Q21
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The long term liabilities are --------------- Project fundSelect one:a. Debt serviceb. permanentc. Capitald. Special
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subject (corporate finance)
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