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Strategic Financial Management

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1. What is capital structure? Why does it matter in terms of a company's financial performance? How does a company's capital structure affect overall risk?

2. What are major areas of risk in financial management? What are major areas of financial risk in your company? Which risk management techniques are important to your company? Why?

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1. What is capital structure? Why does it matter in terms of a company's financial performance? How does a company's capital structure affect overall risk?

Capital structure of a company can be defined as the mix of different source of funds that includes long term debt, short term debt, common equity, and preferred shares. Company uses the mix of all this source of funds to finance its operations.

Company financial performance has a high impact of the capital structure. If a company is using more debt in its capital structure it will have more tax incentive and less number of shareholders as compared to the capital structure with more equity. Due to this the earning per share (EPS) of the company increases. If it uses more equity then ...

Solution Summary

Capital structure is defined. Why it matters in terms of a company's financial performance is examined. The major areas of risk in financial management is determined.

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MGT-485

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IFAS, EFAS, and SFAS tables are to be presented in Excel format, separate from the rest of the assignment, which is to be written in a Word file. As a reminder, two files are to be submitted: One Excel file (counting for three pages) and one Word file (up to seven pages double-spaced).

You will be graded on your knowledge of the software in building the MS Excel tables, and on your ability to communicate in writing and present your arguments. You will also be graded on your ability to analyze socio-cultural, political-legal, technological, and financial data to justify your available strategies and the one(s) you recommend, and finally on your critical thinking and problem solving abilities in justifying your set of strategies.

Explain the strategic management process within the global environment.
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DONT NEED (EFAS, IFAS, SFAS) Excel file

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