Problem 1. Discuss the advantages and disadvantages of financing capital expenditures through the use of internally generated cash. Cite cases where it is more effective and efficient to fund through internal funds and external funding sources; why would a financial manager choose one method over the other?
Problem 2. Find two publicly traded companies of your choosing. Look on the Internet for their financial information to see who the majority shareholders are for the corporation. Are they individual shareholders? Are they institutional shareholders (like mutual funds or pension fund organizations)? What are the implications of each type of majority shareholder with respect to the decision making that goes on at the firm?
Problem 3. If you were the CFO of a firm, what ways could you employ to make the issuance of your company's bonds more attractive in the market? In answering this question, research the current prices and bond yields of a few companies. Compare and contrast these yields with respect to what you perceive of the value of those companies.