Financial managers have access to a variety of tools to help them make well informed financial and investment decisions. Some of the most common strategic concepts are break-even analysis, the cost of capital concept, and optimal capital structure. Write an academic paper of between 1000 and 1475 words (4 to 5 pages) describing how financial managers can improve their performance by using different techniques. Where there are related ethical or legal issues, be sure to include them in your paper. Your paper should include discussion on:
- Differences between financial structure and capital structure.
- Objectives of capital structure management.
- Optimal capital structure.
- Assumptions of the break-even analysis.
- Weakness points of the break-even analysis.
- The nonlinear break-even analysis.
- Ethical and legal issues related to these concepts.
Be sure to:
- Follow accepted research approaches and citation format (APA style).
- Convey your understanding of the readings and concepts and their application to the topic.
- Write in an organized and coherent way.
- Check for and correct spelling, sentence structure, and grammatical errors.
- Demonstrate graduate-level analytical skills. [MO6.3]