Please answer the following Questions.
1. 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.
2. 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.
3. What factors must a financial manager consider when making decisions about accounts receivable?
4. List some of the working capital management practices you would expect to see in a manufacturing company following just-in-time inventory practices.
5. Define underpricing, and explain why the majority of IPOs are underpriced. What role do investment banks play in the price-setting process?
Note:
– Note that each question should be answered in a minimum of 200 – 300 words.
– Be typed, double spaced, using Times New Roman font (size 12), with one inch margins on all sides and heading; citations and references must follow APA format. Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date.You are encouraged to provide detailed answer.
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