MPORTANT NOTE: The questions must be address in its full context. These questions are an opportunity to go outside the box to demonstrate your analytical, integrative, problem- solving and critical thinking skills using the knowledge acquired in your readings. As a result, it is very important to pay close attention to the questions and be able to conduct your discussions in the context of your question. – Please keep this in mind when you complete this assignment.
You must expand your ideas further. Analysis must be deep and very instructive.
ANSWER THE FOLLOWING QUESTIONS. Each question should be answered in at least 300 words. Quality of content and use of course and outside-of-course resources to support your position or analysis. The answers should not be in the form of essay, just straight to the point- Work must be original and cite your sources.
Please be sure to answer the question completely but specifically in well-written complete sentences.
Use the link to help you answer these questions, and conduct your own research
Textbook, found at: https://vk.com/doc-77652506_340859945?dl=9e4506fed8154b2ff5
1. Your company is now wishing to undertake a new project. What are the issues to be considered when considering the use of debt vs. equity financing of this new project? Of these two types of capital which will have the most impact on earnings per share for your company?
2. In your continuing effort to determine whether to use debt or equity financing of a new project you are also trying to determine if you should use the weighted average cost of capital (WACC) or if you should use the capital asset pricing model (CAPM). What are the pros and cons related to using each of these evaluation methods in making your financing decision?
3. Your company is now considering the amount to pay out in dividends at the end of the current quarter. If your company has consistently paid dividends that were relatively constant over the last several quarters, what concerns should you address based upon the dividend signaling hypothesis?
4. You have now decided to pay out dividends at the end of your company’s current quarter. You have asked your company Treasurer to discuss each of the following terms related to dividends.
- Declaration date
- Record date
- Ex-dividend date
- Distribution date
How will your Treasurer describe each of these items?