Corporate Finance #5 Financing Decisions

Apply a ratio-based estimation method to projected sales across upper, middle, and lower scenarios, using equal or weighted averages to derive an expected figure for financing decisions.

Estimate financing needed for asset increases by linking sales-driven rises in accounts receivable and inventory, calculating net income from profit margin, and determining external financing.

Explore level production versus seasonal production in a four-month corporate finance problem, analyzing ending inventory, financing via a line of credit, and monthly interest on unsold inventory.

Compare short-term and long-term loan options through practice problems. Analyze fixed and variable rates, interest versus principal, and the time value of money to assess risk and cost.

Compare equipment financing: a fixed three-year loan at 10% versus a short-term 8% option with rollovers, considering rate jumps to 13% and 16% and end-of-period principal repayment.

Compare asset and financing mix options by evaluating less liquid versus more liquid assets and short-term versus long-term financing. Analyze returns on assets across scenarios to guide strategic choice.

Break down assets into temporary current, permanent current, and fixed assets, and pair them with short-term and long-term financing. Analyze the impact of interest rates and taxes on financing decisions.

Compare aggressive and less aggressive financing strategies by breaking assets into temporary current assets, permanent current assets, and fixed assets, then analyze long-term versus short-term financing costs.

Explore financing strategies using permanent and temporary assets, balancing long-term and short-term funding at 12% and 8% to influence earnings after taxes.

Estimate the expected return on securities by averaging returns from staggered bonds across two to four year maturities, improving liquidity and diversification.

Explore break-even points between variable short-term financing rates and a fixed rate, computing monthly and yearly interest, and practicing with Excel or Google Sheets.

Demonstrate level production to cover seasonal sales, build inventory, and prepare a cash budget while evaluating financing and loan needs to maintain a minimum cash balance.

In this corporate finance excel practice, estimate future sales values using three scenarios (upper, middle, lower) with assigned probabilities and ratio-based calculations to derive expected sales.

Estimate financing needed for an increase in assets with an Excel-based projection, balancing assets with equity and liabilities. Review net income, dividends, and retained earnings to determine external funding needs.

Compare level and seasonal production with an Excel model, analyzing inventory costs, line-of-credit financing, ending inventory, and monthly interest impacts.

Explore short-term vs long-term loan financing through an Excel problem, comparing fixed and flexible rates, end-of-year interest payments, and the time value of money to assess total cost.

Explore equipment financing choices for a three-year, 420,000 purchase by comparing fixed 10% loans with short-term 8% options and multiple rate scenarios, including best and worst cases.

Explore asset and financing mix options in corporate finance by comparing aggressive and less aggressive strategies, calculating returns before interest, and evaluating short-term versus long-term financing with Excel practice.

Analyze asset mix and financing mix in a corporate finance Excel practice problem, distinguishing permanent and temporary current assets and comparing long-term versus short-term financing and earnings after taxes.

Explore how to compare financing options in Excel by splitting assets into temporary and permanent, and evaluating less aggressive versus more aggressive long-term and short-term debt plans.

Explore financing strategies in an Excel exercise by separating permanent and temporary current assets, then compare long-term and short-term debt scenarios and their impact on interest and taxes.

Explore the expectations hypothesis theory for the expected return on securities using a practical excel problem. Learn how staggered bonds and diversification affect annual returns across maturities.

an excel-based practice problem explores the break even point between variable and fixed interest rates for short-term financing, computing monthly and yearly rates and total financing from January to June.

Develop a level production plan in Excel to smooth output with seasonal sales, and build cash flow schedules—receipts, payments, inventory, and a line of credit to maintain minimum cash.