McKenzie Corporation Capital Budgeting Coursework

McKenzie Corporation Capital Budgeting - Coursework Example In case there is no expansion, the value of bonds will remain unchanged since it replicates the status of the bond holders which, as well remains unchanged. Provided the expansion of the company occurs, the presence of net value created by expansion (0.2 million), will boost equity leading to decrease in the debt to equity ratio. Intuitively, the company will also be experiencing reduction of the rate of return associated with its bonds. Decrease in the debt to equity ratio and rate of return will trigger increase in value of bonds and their price (Graham et al, 2010). Further, from the calculations above one can also deduce what will happen to the company in case it does not expand; especially, the effects on future borrowing: Without expansion, the equity will remain the same as it is presently. In which case, the expiry of debt convenant next year implies that the company will not have greater equity needed to get financing (borrowing) to be used for expansion. With expansion, the company secures enough equity to finance its expansion, as shown in 0.2 million net value creation. This will trigger more equity next year, thanks to the expansion. Naturally, this places the company in a position where it is able to access more financing required for borrowing needs in the future. The use of cash, rather than equity, in financing the expansion would have made it more productive and efficient because it relieves the company of the costs which may have been spent in changing equity into cash. The use of cash also means that the company would then avoid the time consuming procedure (changing equity to cash) (Graham et al, 2010). Consequently, the expansion would even look better when using cash than when using

Information Security Master Essay Example | Topics and Well Written Essays - 10500 words

Information Security Master - Essay Example IT security policies in the private sector are also reviewed. In part II (3.0 -- 3.7) we shall focus attention on plans and efforts to implement the Federal Information Security Management Act (FISMA) by the computer security division of NIST. NIST has created what it describes as the "FISMA Implementation Project" which NIST has broken down into three phases. Phase I discusses security standards and Guidelines, Phase II delves into organizational accreditation program while phase III is called the Security Tool Validation Program. We review too Department of Defense (DoD) security certification and accreditation (DITSCAP) program. We take a look too at funding sources for implementing FISMA and how the private sectors are reacting to FISMA. Part III of this thesis (4.0 - 5.0) takes a deep look at the impact of FISMA in federal government agencies and departments and compliance efforts. We examine a few case studies and then move on to look at the private sector compliance initiatives, including software produced by the private sector software industry to help government agencies and departments achieve compliance easily We link how the various policies, circulars and presidential executive orders shaped management of information and information systems in the federal government. Our methodology is to link how the various policies, circulars and presidential executive orders shaped management of information and information systems in the federal government. We analyze the US Government Accounting Office (GAO, 2006) report and the House 'FISMA Report Card' (Federal Computer Security Grades: 2001 -2005) In the Thesis conclusion we show that FISMA has infact reduced the risk, albeit slowly, to information security in Federal