1.Explain the process of financial planning used to estimate asset investment requirements for a corporation.Explain the concept of working capital management.Identify and briefly describe several financial instruments that are used as marketable securities to park excess cash.
2. Assume that you are a financial advisor to a business. Describe the advice that you would give to the client for raising business capital using both debt and equity options in today’s economy.
3. Explain why a business may decide to seek capital from a foriegn investor indicating the risk and rewards for such a decision.
4. Explain the historical relationships between risk and return for common stocks versus corporate bonds. Expalin how diversification helps in risk reduction in a portfolio.