Finanical Management Essay Example | Topics and Well Written Essays - 2500 words

Finanical Management - Essay Example manufactures time series photographic equipment. It is currently at its target debt-equity ratio of 1.3. It is considering building a new 45million manufacturing facility. This new plant is expected to generate after-tax cash flows of 5.7 million to perpetuity. There are three financing options. It will be noted that the flotation charges made from issuing common stock has caused the shortage on the required investment for the new building. Initially, the firm has considered raising funds to finance new building construction, but it seems this option needs some mix re-alignment or additional financing either thru bonds or bank borrowings. Flotation cost is defined as the costs associated with issuance of new securities. It is the portion of the proceeds associated with the size of the spread. It includes costs incurred by the underwriting company in marketing the stocks. Annual coupon rate 9% YTM 20 yrs. Purchase value $950.00 Face value $1000.00 Current yield 9.474% Yield to maturity 9.570% A criterion for evaluation of NPV is when NPV is more than zero, accept the project when it is positive, and when the NPV is negative, reject the project. NPV also gives us an idea if the total net present value can finance the project cost. (Van Horne) M & M contends that capital structure is irrelevant, and that the value of the firm depends on its total asset and not by its capital structures. In the diagram above of two firms, both are levered by equity and debt and have similar financial capital structure. The only difference that could be observed is how they finance their operation. In diagram A, 70% is levered by stock

Within the context of project management, critically assess the nature Essay

Within the context of project management, critically assess the nature and importance of value - Essay Example Naturally, such a process necessarily is oftentimes nearly synonymous with leadership. Moreover, effective project management must engender good leadership qualities if it is to champion the quality of inspiration over coercion; choosing to allow for the possibility of trailblazing new ideas rather than merely following a prescriptive playbook of actions based upon needs. Further, effective project management, although prized and likely a commodity that is lacking within the current professional and political world, is not often appreciated within many of the largest multinational corporations throughout the world. This is of course due to the fact that oftentimes management is expected to be carried out utilizing a rather formulaic approach that does not rely upon the leadership capacity or imagination of the individual. However, leadership/project management itself entails a great deal more than mere direction. Corollary parts of trust, belief, and mutual understanding between peop le are necessary components that cannot and should not be diminished. In this way, effective project management seeks to bring about positive value. ... ving into the step-by-step discussion of how the different management theories relate to an interpretation of leadership and project management within the current model, it must be understood that leadership and project management are two distinctly interconnected concepts. Whereas management refers to the actual process of accomplishing tasks, focusing resources, and mitigating risks, leadership engenders a more nuanced and personal understanding of how a given individual can encourage cooperation and respect within the employees/stakeholders in question (Mayer et al., 2012). By much the same token, project management has a number of roles and functions whereas leadership is not judged by easily quantifiable metrics. For instance, project management roles and functions can include, but are not limited to, decision-making, problem-solving, motivation, influencing, negotiating, delegation, and communication (Sharma, 2013). This is not meant to state that leadership does not engender m any of the same requirements. However, leadership is something that should not be understood to exist wholly separate from the management process. Rather, the two, in an ideal interpretation and application, must exist side-by-side as a means of providing the best overall product and experience to all individuals involved within the process (Muethel et al., 2012). In such a way, one of the best means of measuring effective leadership is to seek to engage with effective project management and ensure that these determinants are met first and foremost. Only once effective project management is realized, can true leadership tickets form (Patel, 2012). This is not to state that leadership must follow managerial process and/or theory 100% of the time. Rather, past instances have proven that many