For discussion board

For discussion board

In one page discussion the following two points:

1- Working Capital Management and Banking Relationships- Briefly comment on the implication of using a concentration bank for an organization’s cash management activity.

2- Capital Structure – Long Term Debt and Equity Financing- Briefly discuss the methods used in determining an organization’s cost of capital and the value resulting from it.

Solution Preview

Financial Resources Management
Question One
Concentration banking involves the use of one bank for storage of an organization’s financial resources. The primary implication of the use of concentration banking lies in the potential to achieve improved financial management through hiring a financial manager.

(317 words)