“Capital Financing PowerPoint Format”
The format for this Case is PowerPoint. One slide minimum for each question. Additional slide for Case Title and an additional slide for cited references. Fifteen slides maximum for the Case work.
Each work is your own; please reference any sources when required. The Case work represents 15% of your total course grade.
The object of the format of this Case is to present information and interpretation in a format that requires concise and bullet point interpretations.
You will be assessed in three areas:
33% – Presentation format and clarity
33% – Data Use
34% – Analysis & Interpretation
Part I – Risk vs. Return (Chapter 6)
In historical data, we see that investments with the highest average annual returns also tend to have the highest standard deviations of annual returns. This observation supports the notion that there is a positive correlation between risk and return.
Below are five typical investment alternatives, I would like you to rank these five from lowest risk to highest risk and explain your reasons for the ranking. In addition provide an example of a real investment that represents each alternative. Current stock price or current yield of the credit investment.
Large-company stocks Small-company stocks Long-term corporate bonds
- Treasury Bills
Long-term Government Bonds
(20-30 year)
Part II – Capital Fundraising (Chapters 5, 6, 7)
Please give a “real world” example of a recent capital fundraising.
Be it an IPO, or debt offering, or private financing.
State the specific of the deal: company, date, amount, investment brokers, etc.
What was the reason for the capital call and
was it successful in your opinion: Why or why not?
Part III – Capital Structure Analysis (Chapter 9)
Please explain the Capital Structure and the costs of this Capital Structure for a company.
Please define the following:
- Cost of Debt
- Cost of Equity
Give examples of these cost definitions.
