Discussion Post
Part: I
Explain why time might play a significant role during low-interest periods in a decision of whether to choose a private placement or public sale.
Part II
Answer the following Questions (Each 175 words).
• Explain why the required rate of return on a firm's assets must be equal to the weighted average cost of capital associated with its liabilities and equity.
• Which is easier to calculate directly, the expected rate of return on the assets of a firm or the expected rate of return on the firm's debt and equity? Assume that you are an outsider to the firm.
• What factors must a financial manager consider when making decisions about accounts receivable?
• List some of the working capital management practices you would expect to see in a manufacturing company following just-in-time inventory practices.
• Define underpricing, and explain why the majority of IPOs are underpriced. What role do investment banks play in the price-setting process?
The response must include a reference list. Using Times New Roman 12 pnt font, double-space, one-inch margins, and APA style of writing and citations.