Discussion 1
When a firm has an opportunity to earn a rate of return that is greater than the cost of capital, many financial managers assume they should always make the investment. For this discussion, explain why an investment decision like this isn’t always as straightforward as it might seem, and discuss the factors a financial manager should consider before making any investment decisions. *Chapter 11 is attached*
Discussion 2
Prior to beginning work on this discussion, review the liability section in the quarterly balance sheet in the “News Release and Financials” document for Deere & Company you downloaded in Week 1.
Compare the liability section of the balance sheet to the equity section and discuss whether the relationship of debt to equity is appropriate for the company. Explain whether the debt-to-equity relationship has changed from the previous year and assess why financial managers should track this relationship over time. *2nd Qtr Reports attached*
Answer preview to when a firm has an opportunity to earn a rate of return that is greater than the cost of capital
APA
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