Assignment
Specifically the following questions should be addressed within this part of the assessment:
• What proportion of the capital structure will come from debt or equity? Why?
• Will capital be raised locally or from head office? Why?
(1000 words for the two capital structure questions above)
• What are the working capital implications of the project? (500 words)
• What is an appropriate cost of capital for the project (this will provide your discount rate for part three of the assessment)?
• How was the cost of capital calculated? Explain your calculations. (500 words)
Part two of the assessment will therefore involve discussion and numerical analysis.You should decide upon the capital structure of your project in terms of proportions (%) and be able to evaluate and explain your decision. You should present clear calculations for your cost of capital along with an explanation and evaluation of your approach.
1. Capital Structure considerations
Evaluation and explanation of your capital structure decision; what proportion (%, not in monetary amounts) of the capital structure will come from debt or equity? Why? Where will capital be raised from, locally or head office, or other?
2. Working Capital Considerations
Consideration of the working capital implications relevant to your project and the potential international complexities
3. An appropriate cost of capital
Clearly presented, informed cost of capital calculations; clearly sourced data; an explanation and evaluation of your approach, including discussion of any assumptions made
4. Effective presentation; location and use of sources; evaluation of data and information
Ability to evaluate arguments, evidence and data
Ability to locate, extract and an analyse data from multiple sources, including acknowledgement and Harvard referencing of sources.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.