Part 1 and Part 2

Part II—Executive Summary Presentation

Because of limited resources in an era of plentiful opportunities, companies must carefully select investments. You analyzed Genesis Energy’s expansion plans and explained your findings see below:

You will create a PowerPoint presentation that will include the following information:

· An executive summary be sure to adhere to the following:

· The presentation should be approximately (10–12 slides).

· A statement of the problem or topic is included.

· A concise analysis of the findings is included.

· See below specific details to highlight or support the summary are incorporated.

Cost of external financing .external cost is usually the funds needed from outside to expand the business. We shall calculate on the assumption that the market is entirely using its resources. (Christopher, 2011). 

External financing cost = (FS-CS) -(FS-CS)- (PM CS RR)

A- Value of assets

Cs –current sales

Fs – Future expected sales

L – Liabilities

PM – Profit margin RR -Retentionratio

Example. The calculation is for the full utilization of resources.

 

 On the other side risk =

The cost is substantial as it helps the business to preserve and use its resources appropriately, this forms part of the planning of any businessman. Second, it helps in estimating the growth rate of the business; this is vital for internal and external uses especially to acquire more capital. For the risk, it sounds an alarm to the managers of the market on levels of the dangers of the business and how to try and mitigate them in time. (Christopher, 2011). (Bertonèche, & Knight, 2001). 

It is quite right to experience an expansion in business thus call for the need for a rapid growth plan. It will give a guideline on what to do at any particular stage one reaches with the business. The program will help in kind of people required to be employed to advance the agenda of the company. Showing areas to expand to accommodate the rise, and activities to abandon to create room for more profitable ventures. (Bertonèche, & Knight, 2001). The risk calculation in a company also gives clear areas to lay strengths on to make profits because they can be the loop holes in the business. When a properly calculated cost is given out it acts as an evidence of the expertise in the business thus attracting other probable investors  

References

Christopher, A. (2011). Risk. New York, NY: Kensington Publishing Corp.

Skinns, L., Scott, M., & Cox, T. (2011). Risk. Cambridge, UK: Cambridge University Press.

Bertonèche, M., & Knight, R. (2001). Financial performance. Oxford: Butterworth-Heinemann.

Develop a 10–12-slide presentation in PowerPoint format. Apply APA standards to citation of sources.

Due Sunday 12/10/2017