Case FIN501 Strategic Corporate Finance  Leverage, Capital, Structure and Divided Policy Case Assignment Part A: Quantitative Problems Suppose QuickCharge

Case FIN501 Strategic Corporate Finance 

Leverage, Capital, Structure and Divided Policy

Case Assignment

Part A: Quantitative Problems

  1. Suppose QuickCharge Corporation manufactures phone chargers. They sell their chargers for $20. Their fixed operating costs are $100,000 and their variable operating costs are $10 per charger. Currently they are selling 30,000 chargers per year.
  2. The StayDry Umbrella Corporation will have an EBIT of $100,000 if there is a normal amount of rain this year. But if there is a drought, they will have an EBIT of only $50,000. The interest rate on debt is 10%, and the tax rate is 35%. The company does not pay any preferred dividends.

Part B: Conceptual Questions

  1. For each of the following scenarios, explain whether the situation describes financial risk or business risk. Explain your answers to each scenario using at least one of the references from the background readings:
  2. Explain what capital structure theory (or theories) best describes the following situations. Make sure to cite at least one of the required textbook chapters for each answer, and to cite at least two references for this section:

Assignment Expectations

  • Answer the assignment questions directly.
  • Stay focused on the precise assignment questions. Do not go off on tangents or devote a lot of space to summarizing general background materials.
  • For computational problems, make sure to show your work and explain your steps.
  • For short answer/short essay questions, make sure to reference your sources of information with both a bibliography and in-text citations. Citation and reference style instructions are available at Trident University’s Introduction to APA Style, 7th edition .

***Please follow all instrutions for assignment. ***

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

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

Related Questions

Instructions Preparation View the Technology in Corrections BriefingLinks to an external site. video that introduces you to the types of challenges to

Instructions Preparation View the Technology in Corrections BriefingLinks to an external site. video that introduces you to the types of challenges to corrections operations and challenges you to find solutions. Download the Week 10 Assignment Template Download Week 10 Assignment Template and use it to complete this assignment. Review Electronic Monitoring of Offenders: An Ethical

I need your assistance…. 500 words. 2 current academic references (w/in 5 years). Describe dermatitis, diagnostic criteria, and treatment

I need your assistance…. 500 words. 2 current academic references (w/in 5 years). Describe dermatitis, diagnostic criteria, and treatment modalities Describe the drug therapy for Conjunctivitis and Otitis Media Discuss Herpes Virus infections, patient presentation, and treatment Describe the most common primary bacterial skin infections and the treatment of choice.

CASE #2 Nancy Jefferson is the superintendent of a medium-sized public school district. Nancy is passionate about finding ways to better prepare her

CASE #2 Nancy Jefferson is the superintendent of a medium-sized public school district. Nancy is passionate about finding ways to better prepare her district’s students for life after high school graduation. While the district’s current teaching methods are in accordance with the state-mandated curriculum and her district’s students are testing