CORPORATE FINANCE AND GOVERNANCE

Corporate Finance and Governance

Corporate Finance and Governance

Introduction

Purpose of the Study

The main purpose of this study is to understand the corporate finance issue of Medco Republic and to determine the financial measures for the company.

Problem Statement

Medco Republic is facing some issues with the foreign currency risks on the company's investment. This report examines the different corporate finance approaches in order to solve the company's issues.

Research structure

This research report is based on the introduction section in which the main problem is being reported (Ali, 2003). The second portion of this report is comprised of the discussion section and which all the issues and problems are being considered. The final section is the conclusion section in which the results of the study are being determined.

Limitations of the study

A number of limitations of our study must be mentioned. These limitations also provide avenues for further research. A major limitation is that only one organization was selected (Andrade, 2001). In future studies a number of different industries can be selected to improve generalizability.

Secondly, our study will use data obtained from customers to a limited extent. Additional studies in this field should use customer-based data to a greater extent than we will to achieve a deeper understanding of the processes that drive customer reactions.

Thirdly, our study merely considers the moderating effects of the customer orientation of integration (Cheng, 2003). It is plausible that customer orientation of integration has a direct effect on cost savings and market-related performance.

Assumptions & Limitation

It was also assumed that the data sources that used within the studies were reliable and having valid data, the participants were randomly selected from the whole chosen (Arkes, 2005). There were certain limitations to this study because it was focused one single group that has limited amount of sample to calculate, this kind of study can be conducted on international level and by doing so we will expand the cultural and geographical factors in the research.

Discussion

Viability of Proposed Investment

Chartered accountants offering corporate finance services like preparations of project reports, financial viability report of the project, assisting clients in raising finance through various instruments and assistance in external credit borrowing.

The rate of return of this investment project is 17.804%. The net worth of this project is $31,135.61(Asquith, 2003).

The project is viable as its NPV is positive, whereas its IRR is also more than the cost of capital.

In the case of Independent conventional investments, the NPV and IRR methods yield the same results. However, in certain situations they will give contradictory results such that if the NPV method finds one proposal acceptable, IRR finds another. This is so in case of Mutually Exclusive Projects. If there are alternative courses of action, only one can be accepted. Such alternatives are called mutually exclusive (Baker, 2004). The mutual exclusiveness of the projects may be of two types:-

Technical: - The term technical exclusiveness refers to alternatives having different probabilities and the selection of the alternative which is the most profitable. Thus, in the case of Purchase or lease ...