inerpret the result and Review the main sources of financing and uses of financing. Which are the
Question:
inerpret the result and Review the main sources of financing and uses of financing.
Which are the main investments and the main sources of financing?
To further analyze investment and financial decisions consider the following questions: Short-term horizon How do current assets match with current liabilities?
Are you concerned that current assets are not large enough to cover current obligations (liabilities)? Long-term horizon Which sources of financing are used to undertake long-term investment projects? For this part, compare:
a) long-term assets to long-term liabilities & shareholders’ equity,
b) property, plant and equipment (PPE) to long-term debt (LTD).
In your opinion, is the mixture of long-term liabilities & shareholders’ equity appropriate given the nature of corporate assets (e.g., tangible and intangible assets) and the level of cash flow predictability (e.g., highly/less certain cash flows in less/more cyclical industries).
Fundamentals of Financial Management
ISBN: 978-0324664553
Concise 6th Edition
Authors: Eugene F. Brigham, Joel F. Houston