Determining The Financing Mix And Break-Even Analysis
There are two important questions financial managers should ask:
- What level of assets are needed to operate?
- How to finance those assets or raise capital? (The firm can use equity or debt financing or combination of both.)
Select a publicly traded company (make sure your selected company is different than your classmates’) based in KSA and look (in terms of percentage) how it finances its operations using equity or debt financing.
In addition, in Saudi Arabia Vision 2030 stated SMEs (Small-Medium Size Enterprises) struggles to access adequate funding from the financial institutions. Offer two recommendations how this struggle is addressed and be in alignment with Saudi Vision 2030.
Search the Internet for an academic or industry-related article. Select an article that relates to these concepts and explain how it relates to doing business in Saudi Arabia.
For your discussion post, your first step is to summarize the article in two paragraphs, describing what you think are the most important points made by the authors (remember to use citations where appropriate). For the second step, include the reference listing with a hyperlink to the article. Do not copy the article into your post and limit your summary to two paragraphs. Let your instructor know if you have any questions and enjoy your search.
You are required to reply to at least two peer discussion question post answers to this weekly discussion question and/or your instructor’s response to your posting. These post replies need to be substantial and constructive in nature. They should add to the content of the post and evaluate/analyze that post answer. Normal course dialogue doesn’t fulfill these two peer replies but is expected throughout the course. Answering all course questions is also required.
- Chapter 12 in Foundations of Finance – Determining the Financing Mix
- Benlemlih, M. (2017). Corporate social responsibility and firm’s financing decisions: A literature review. Journal of Multinational Financial Management, 42-43, 1-10, 2017. Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3560158
- Li, Z., Li, Q., & Zeng, Y. (2020). Contraction flexibility, operating leverage, and financial leverage. Journal of Management Science and Engineering.
- Chapter 12 PowerPoint slides in Foundations of Finance – Determining the Financing Mix
- Yan, C., & Huang, K. X. D. (2020). Financial cycle and business cycle: An empirical analysis based on the data from the U.S. Economic Modelling.