Cashback Offer from 5th to 10th October 2021. Get Flat 10% Cashback credited to your account for a minimum transaction of $80. Post Your Question Today!

Question DetailsNormal
$ 18.00

Finance Organisation and long term planning for Genesis Energy

Question posted by
Online Tutor Profile
request

Considering Genesis Energy’s aggressive growth plan, Sensible Essentials suggested that its client should broaden the scope of financing beyond short-term loans and consider long-term financing options. These options would greatly enhance the ability of the operations management team to fund the capital investments and growth in operating expenses. 



One option is selling more equity in the company. A public stock offering might be a possibility; however, a company as young and small as Genesis Energy might be hard to value. Sensible Essentials believes that another private investor might require preferred stock dividends in order to mitigate some of the financial risk. Another option is a long-term bank loan.



Acting as the finance expert for Sensible Essentials, respond to the following:

·         Determine the cost of debt and equity for Genesis Energy and its weighted average cost of capital. Go to www.yahoofinance.com and look under SEC filings. Use a US publicly traded company, such as Apple, Google, DuPont, etc. 

·         Identify the sources of long-term financing for Genesis Energy.

·         Analyze the potential costs and benefits of each option.

·         Explain how relative risk (from the investor’s perspective) impacts the cost of capital for Genesis Energy.

·         Determine the cost of debt and equity for Genesis Energy and its weighted average cost of capital.

·         Calculate the required rate of return for Genesis Energy using the capital asset pricing model (CAPM). What is the required return for Genesis Energy shareholders?

Write your initial response in 5–7 paragraphs. Apply APA standards to citation of sources.

By Saturday, June 28, 2014, post your response to the appropriate Discussion Area. Through Wednesday, July 2, 2014, review and comment on at least two peers’ responses. In your response, do the following:

·         Respond with substantial comments to enrich discussion and the learning experience.

·         Contribute new, relevant information or quotes from course readings, Web sites, or other sources. Build on the remarks or questions of others, or share practical examples of key concepts from your experience, professional or personal.

Assignment 1 Grading Criteria

Maximum Points

Initial response:

·         Was insightful, original, accurate, and timely.

·         Was substantive and demonstrated advanced understanding of concepts.

·         Compiled/synthesized theories and concepts drawn from a variety of sources to support statements and conclusions.

16

Discussion response and participation:

·         Responded to a minimum of two peers in a timely manner.

·         Offered points of view supported by research.

·         Asked challenging questions that promoted the discussion.

·         Drew relationships between one or more points in the discussion.

16

Writing:

·         Wrote in a clear, concise, formal, and organized manner.

·         Responses were error free.

·         Information from sources, where applicable, was paraphrased appropriately and accurately cited.

8

Total:

40

Available Answer
$ 18.00

[Solved] Finance Organisation and long term planning for Genesis Energy

  • This solution is not purchased yet.
  • Submitted On 24 Aug, 2017 03:47:36
Answer posted by
Online Tutor Profile
solution
Finance Organisation and long term planning for Genesis EnergyFinance Organisation and long term planning for Genesis EnergyFinance Organisation and long term planning for Genesis Energy...
Buy now to view the complete solution
Other Similar Questions
User Profile
Tutor...

Go to either Yahoo Finance or Google Finance to obtain the selected firm’s

Go to either Yahoo Finance or Google Finance to obtain the selected...
User Profile
Tutor...

Go to either Yahoo Finance or Google Finance to obtain the selected firm’s

Go to either Yahoo Finance or Google Finance to obtain the selected...
User Profile
Tutor...

John and Jay are college roommates. Jay is a finance officer with the Bank and earns $200,000 per

Answer A: Due to the risk in loan repayment, the bank was denied the loan to John. But, the bank was granted the loan by taking the agreement of Jay. Bank has also secured the loan because it ...
User Profile
Good_...

Finance Organisation and long term planning for Genesis Energy

Finance Organisation and long term planning for Genesis EnergyFinance Organisation and long term planning for Genesis EnergyFinance Organisation and long term planning for Genesis EnergyFinance Organisation and long term plan...
User Profile
NUMBE...

From Yahoo!Finance obtain a report on any two companies

1. What are the betas listed for these companies? Stock A: Microsoft corporation beta = 1.02 Stock B: Apple corporation beta = 1.35 2. If you made an equal dollar investment in each stocks what......

The benefits of buying study notes from CourseMerit

homeworkhelptime
Assurance Of Timely Delivery
We value your patience, and to ensure you always receive your homework help within the promised time, our dedicated team of tutors begins their work as soon as the request arrives.
tutoring
Best Price In The Market
All the services that are available on our page cost only a nominal amount of money. In fact, the prices are lower than the industry standards. You can always expect value for money from us.
tutorsupport
Uninterrupted 24/7 Support
Our customer support wing remains online 24x7 to provide you seamless assistance. Also, when you post a query or a request here, you can expect an immediate response from our side.
closebutton

$ 629.35