https://www.youtube.com/watch?v=tUT-eJR5ZOY After watching the video, answer the following questions in

 https://www.youtube.com/watch?v=tUT-eJR5ZOY

After watching the video, answer the following questions in your post:

  • Did Alex Clark initially fund the business with equity or debt?
  • Initially, Clark’s chocolate business is very small. Compared to publicly traded companies, would Clark’s required rate of return on equity be higher or lower than the “average” required rate of return on equity for small cap companies of 15%? Explain your answer.
  • After the business was established, Clark talked about buying a building to expand. This is a good example of an investment project that a business must evaluate. Would the required rate of return for Clark’s building purchase be higher or lower than the overall chocolate company’s required rate of return? Explain your answer.
  • Should Clark use some bank debt to finance all or a portion of the building purchase?
    • Justify your answer by explaining how the weighted average cost of capital for the company would change if Clark uses bank debt to finance all or a portion of the building purchase.
  • What is the primary risk that Clark faces if she uses debt to finance the entire building purchase? For purposes of this discussion, assume that the debt would then comprise 95% of the company’s capital structure.

Guided Response: Review several of your colleagues’ posts, and reply to at least two of your peers by 11:59 p.m. on Day 7 of the week. In your written responses to your classmates, address the following:

  • Provide feedback on your peers’ answers, including whether you agree or disagree with any of the answers or reasoning provided. Justify your opinion.
  • State your opinion on whether Clark should use debt to finance the building purchase, and if so, how much debt should be used (as a percent of the total building price). Justify your opinion.

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

TASK: Please review the following codes of Ethics: Based on

TASK: Please review the following codes of Ethics: Based on your review of the codes, identify (by code number & title) which ethical code(s) for AAMFT & APA are you most interested in learning about from your therapist interview (in prep for assignment #3) American Association for Marriage and Family

The primary mission of the social work profession is to

 The primary mission of the social work profession is to enhance human wellbeing and help meet the basic human needs of all people, with particular attention to the needs and empowerment of people who are vulnerable, oppressed, and living in poverty. A historic and defining feature of social work is

Recommended Slide Content: Title Slide (1 slide in APA 7th

Recommended Slide Content: Title Slide (1 slide in APA 7th edition formatting). Introduction (1 slide) History of your emerging technology (1-3 slides) System Improvements (1-4 slides)  Discuss how the emerging technology supports (as applicable)  Care Coordination Patient Safety Quality Improvement Cost Containment Patient Engagement Benefits and Barriers  Pros (1-2 slides)

This week, you are continuing your study of constitutional principles

This week, you are continuing your study of constitutional principles and discussing any biases that may exist in the legal system. In regard to the Eighth Amendment, the United States Supreme Court has held that the death penalty is not a per se violation of the Eighth Amendment. Gregg v.

Illegal Dumping in South Florida

 The Unit 4 Research-Based Synthesis Essay is the culmination of the ENC 1102 course and will incorporate all the skills students have acquired throughout the semester. In this unit, students will apply what they learned in Units 2 and 3 regarding evaluating texts and incorporating multiple perspectives on an issue

In your own words, describe the OPT model and the

In your own words, describe the OPT model and the CCCR model. How have you used it in caring for patients and their families in a clinic setting? Use at least one scholarly source other than your textbook to connect your response to national guidelines and evidence-based research in support

Prior to reading this DQ, please read the CLA 1

   Prior to reading this DQ, please read the CLA 1 assignment and understand what the assignment is asking you to complete. Once you have an understanding of the CLA 1 assignment, please continue to the paragraph below to complete DQ 1. Using the Library Information Resource Network (LIRN), JSTOR,

Safety Score Improvement Plan

Assessment #2 Preparation Refer to the Capella library and the Internet for supplemental resources to help you complete this assessment, a safety score improvement plan. Consider the hospital-acquired conditions that are not reimbursed for under Medicare/Medicaid. Among these conditions are specific safety issues such as infections, falls, medication errors, and

HW#1: Alternative Advocacy I want to see a few hours

 HW#1: Alternative Advocacy  I want to see a few hours of work. Make an argument (socially or politically controversial). Don’ts: Research or linear thoughts/arguments Structure/Organization. Basically, I just want a creative expression of an argument. Examples: Poetry Story Painting Sculpting Collage Something built or designed Mash-up Movie/Song etc. You can

Select an article from Business Week, Forbes, Wall Street Journal,

Select an article from Business Week,Forbes, Wall Street Journal, etc. that you think describes some internal factors fora specific company. Answer these questions and be specific. – 25 pts.o Identify and discuss two internal factors, using information from chapter 4,for the company in the article. Within your discussion determine and

Septic shock can often be overlooked because of underlying conditions

Septic shock can often be overlooked because of underlying conditions that are presented within the patient. The patient you are assessing upon arrival from the emergency department to the ICU has acute renal failure, fever, and leukocytosis; is hypotensive; and has altered mental status. Based on this type of patient,

Considere la siguiente tabla de frecuencia absoluta: Diás de Vacaciones

Considere la siguiente tabla de frecuencia absoluta: Diás de Vacaciones 0 5 10 12 15 20 Frecuencia Absoluta 12 15 23 22 21 11 Si seleccionamos un empleado aleatoriamente, calcule las siguientes probabilidades: Que no tome vacaciones. Que tome vacaciones. Que tome al menos 5 días de vacaciones. Que tome

Identify a health disparity prevalent in the Kingdom of Saudi

Identify a health disparity prevalent in the Kingdom of Saudi Arabia. Examples include, but are not limited to, nutrition- and lifestyle-related risk factors such as obesity, hypertension, and diabetes, as well as lack of insurance. Include any tables or figures containing statistics to support your narrative.  Based on what you

Identify at least three risks that auditors need to consider

Premium Paper Help is a professional writing service that provides original papers. Our products include academic papers of varying complexity and other personalized services, along with research materials for assistance purposes only. All the materials from our website should be used with proper references.

WU Prescribing for Older Adults and Pregnant Women Discussion Nursing Assignment Help

After assessing and diagnosing a patient, PMHNPs must take into consideration special characteristics of the patient before determining an appropriate course of treatment. For pharmacological treatments that are not FDA-approved for a particular use or population, off-label use may be considered when the potential benefits could outweigh the risks. In

As your report is being prepared for a formal senior

As your report is being prepared for a formal senior management meeting, it should be written in formal business report format and style.  Your report is to be provided to BMC’s forthcoming Strategic Management Planning meeting where the main priority is to discuss implementing the new business strategy. The team