How can the firm determine the cost of alternative sources


Financial Management Assignment

1. A rapidly growing small firm does not have access to sufficient external financing to accommodate its planned growth. Discuss what alternatives the company can consider in order to implement its growth strategy.

How can the firm determine the cost of those alternative sources of capital?

2. Select a publicly traded company, preferable a company from your country that its securities trade in the U.S. capital market.

Download five years of daily stock price of the company and the same for an appropriate index Estimate the beta of the company and using the information in its financial statement unlever the beta. Now use the market value information and financial statement information of the company and calculate the levered and unlevered WACC of the company.

What is your recommendation for the company's capital structure policy?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Financial Management: How can the firm determine the cost of alternative sources
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