Here is the synopsis of our sample research paper on FINANCIAL QUESTIONS AND ANSWERS. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 4-page paper provides answers to questions on financial topics such as debt versus equity, NPV and systematic and unsystematic risk. Bibliography lists 3 sources.
Page Count:
4 pages (~225 words per page)
File: AS43_MTsbfinanc.doc
Buy This Term Paper »
Unformatted sample text from the term paper:
Net present value, or NPV focuses on what a dollar is worth today versus what that dollar will be worth in the future, if invested in a particular project (Net
Present Value, 2012). In other words, the present value of future net cash flow from an investment, minus the initial investment. NPV depends on future cash inflows that an investment
in a project might yield, but in the present time. The formula for NVP is:
Now, if the result of this formula is positive, this investment makes sense for the small business owner. Needless to say, the
owner needs to have the cash flow and discount rate on hand, as well as how much time he or she wants to spend on this particular business.
Explain the advantages and disadvantages of debt financing, and why an organization would choose to
issue stocks rather than bonds to generate funds. The main advantage of debt financing is that its a fixed cost to pay back the loan. The owner knows that there
is a specific amount of money that needs to be paid back to the bank or other lender. Furthermore, debt financing doesnt require that "pieces" of a business be sold
to other people; there are no shareholders involved. Now, one disadvantage to debt financing is that there is a specific amount of
money that needs to be paid back to the bank or other lender. Yes, this was in the "advantage" column as well - but this can become a problem if
...