Chapter 12
Why is the capital structure of a business important?
Why is cash management important for a sports organization?
Which funding option would be the most economical to issue if you were trying to raise $200 million?
What does flotation cost mean?
Why is the time value of money important?
Why is the payback rule important when analyzing financial issues?
If you were to make a capital-budgeting decision based on project cash flows, would you prefer to use NPV, the IRR method, the payback rule, or the
discounted payback rule? Why would you use the method that you have selected? What is the advantage of using multiple methods?
Try to determine the break-even point for selling 500 hot dogs at a game knowing the fixed costs are $250 for the game. Look up the cost for hot dogs,
condiments, buns, and paper plates to help determine what the variable costs will be.
If you were to develop a managerial accounting approach to measure the nonfinancial success of your school’s athletic programs, what would you measure,
how will you get that data, and how will you respond to the information you would uncover?
