Capital Budgeting Techniques
You are a finance manager for a major utility company. Think about some of the capital budgeting techniques you might use for some upcoming projects.
Discuss at least 2 capital budgeting techniques and how your company can benefit from the use of these tools.
Financial Performance Evaluation
You are writing a book on how to evaluate performance evaluation for a company. Think about some of the influences and measures of company performance that you read about in this module.
Explain the use of return on assets (ROA) and the price-to-earnings (PE) ratio in evaluating the performance of a company. Write about how to calculate ROA and PE ratio and how market conditions can affect these metrics. Explain how the return on assets (ROA) and price-to-earnings (PE) ratios are used to measure a company’s performance. Write about how to figure out the ROA and PE ratios and how the market can change these numbers.
Share the ROA and PE ratio for a company you are familiar with. What do these metrics tell you about the financial health of the company?
Please be sure to cite and reference. The assigned book for this course is: Brealey, R., Myers, S. C., & Marcus, A. J. (2020). Fundamentals of corporate finance (10th ed.). McGraw-Hill Education.
Any questions, please don’t hesitate to ask.