You are the finance director of COVACCI (LTD), a company that specializes in the manufacture of Covid vaccines. You have over ten years experience in this role.

One day, one of your subordinates approaches you, asking why the company has both a Financial Accounting department and also a Financial Management department.

Your subordinate thinks that this is duplication of duties and a waste of company resources as she thinks that these two departments can simply be merged into one.

Task:

Write a note for your new CEO, explaining capital budgeting, contrasting this with capital structure, and analysing the role that each of these should play in times of company growth.