Business Finance Assignment - (Doc)

Added on - 21 Apr 2020

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Running head: BUSINESS FINANCEBusiness FinanceName of the Student:Name of the University:Author’s Note:Course ID:
1BUSINESS FINANCETable of ContentsAnswer to Question 1:.....................................................................................................................3Question 2:.......................................................................................................................................3Answer to a......................................................................................................................................3Answer to b:.....................................................................................................................................4Answer to c:.....................................................................................................................................5Answer to d:.....................................................................................................................................5Question 3:.......................................................................................................................................5Answer to a:.....................................................................................................................................5Answer to b:.....................................................................................................................................6Question 4:.......................................................................................................................................6Answer to a:.....................................................................................................................................6Answer to b:.....................................................................................................................................7Answer to c:.....................................................................................................................................7Answer to d:.....................................................................................................................................8Question 5:.......................................................................................................................................8Answer to a:.....................................................................................................................................8Answer to b:.....................................................................................................................................9Answer to c:.....................................................................................................................................9Answer to d:.....................................................................................................................................9Answer to e:.....................................................................................................................................9Question 6:.....................................................................................................................................10Answer to a:...................................................................................................................................10
2BUSINESS FINANCEAnswer to b:...................................................................................................................................10Answer to c:...................................................................................................................................10References and Bibliographies:.....................................................................................................12
3BUSINESS FINANCEAnswer to Question 1:The overall managerial flexibility could be identified as the ability of the management tomake adequate investment decision according to the changes required in current marketconduction. The managerial flexibility mainly ensures the relevant decision regarding theinvestment decision could be conducted by the management, which might help in generatinghigher revenue and reduce the overall risk from investment. With the implementation ofmanagerial flexibility the company also needs to different investment appraisal techniques, suchas Net present value, payback period, Internal rate of return and profitability index to determineviability of the investment (Cole 2013). This relevant increment managerial flexibility couldeventually allow the company to identify the projects, which could provide higher return andgenerate profitability for the company.Question 2:Answer to a.Dividend paymentValueShare price$ 116.00Expenses$ 13,325.00outstanding shares5,125Alternative share price$ 113.40Alternative share price$ 113.40Dividend$ 2.60Shareholder's wealth$ 116.00Share repurchaseValueExpenses$ 13,325.00
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