Question
TESLA is my company. Please help! I am trying to understand this better. Doesnt have to be long. Context: Companies can be analyzed as a
TESLA is my company. Please help! I am trying to understand this better. Doesnt have to be long.
Context: Companies can be analyzed as a "portfolio of projects". Management approves projects that then become part of the capital budget. Accepted projects are those that management considers will grow the firm and add to its value, thereby maximizing shareholder value. This post has three parts.
Part 1: Propose the type of project your company is likely to accept within the next year. You do not need to provide a specific project, but you may (see Chapter 12 for the types of projects). Outline the path the project would take through the capital budgeting process within the company.
Part 2: Observe the trend in the balance sheet over the last 5 years. Look at both the asset side and the liabilities side. Report the trends that you observe in the company's sources/uses of cash.
Part 3: Put yourself in the role of the financial manager/treasurer of the company. Propose what you consider to be the best option for raising capital for proposed projects in the coming year.
Part 4: Conclude your post with an insightful, open-ended question to spark discussion about capital projects.
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