Hello Online Tutor, I have two questions I found interesting on your site and will appreciate a solution guidance on how this was resolved. You are
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Hello Online Tutor,<br/><br/><br/>I have two questions I found interesting

on your site and will appreciate a solution guidance on how this was resolved.



-You are the financial manager of an organisation and are planning to invest £20,000 on a new piece of machinery. This machinery will have a useful economic life of 5 years and the cash flows associated with it are expected to be £4,300 annually. The discount rate is 2% (for part b).


-You are managing an equal-weighted portfolio of stocks (A&amp;B) on behalf of your company's treasury. Assume that stock A and stock B are two risky assets. C is a risk-free asset. The details of these stocks are below

1)   . Appraise Engie's capital structure using the tools discussed in the module.


b. Critically evaluate theoretical advantages and disadvantages of the company's capital structure with regards to the debt and equity structure of the business. How these advantages and disadvantages apply to the specific company?


2)   a. Assess the above company from a short-term financing perspective and comment on the application of the matching principle. What conclusions can you draw, how are they linked with the academic literature?


b. Critically evaluate the potential advantages and disadvantages of the Engie's strategy around the working capital.

Subject: Business, Finance

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