wk4 db brialliant answers

The Genesis Energy operations management team was excited to  understand the various options for securing financing to fund the rapid  growth plans. The team was surprised by the cost associated with using  funds supplied by others after accounting for risk of investments in its  small but profitable company. Sensible Essential Consulting explained  how the cost of external financing can be calculated.
 

Using the readings for the module, Argosy University online library resources, the Internet, and the sources you identified in Module 3, do the following:

• Explain with examples how the cost of capital is determined.
• Calculate the differences in cost and risk. Explain why the costs  and risks of external financing are important for the organization to  understand.
• Explain why rapid growth plans are important to a small company.  Would there be a more efficient way to fund a growing company? Why or  why not? Justify your answer.

By the due date assigned, post your response to the Discussion Area. Through the end of the module, review and comment on at least two peers’ responses.

Write your initial response in 300–500 words.