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MT 480 PUG Capital Budgeting and How China Devalue Their Currency Discussion

 

Unit 9 Topic: Modigliani and Miller: A Challenge to Capital Budgeting Strategies

Financing corporate purchases and overall capital budgeting usually require the finance manager to assess tax rates, dividend payout policy, weighting of capital sources, and more. However, the Modigliani and Miller propositions state that, in most situations, it does not matter if the firm’s capital is raised by issuing stock or selling debt.

As a student, you might assume studies of capital budgeting strategies will no longer be reviewed in coursework.

Before coming to that conclusion, please discuss the principles presented by Modigliani and Miller, what they are trying to prove within their theory, and if you agree or disagree with the theory’s premise.

Your initial discussion post must include one outside resource, which may include the Internet or Library, and must be cited according to current APA formatting.

Unit 10 Topic: The Finance Manager and Global Considerations

Most people unwittingly purchase many imported goods. It might be an interesting exercise to check your recent purchases to see how many items include a “Made in China” tag. The U.S. has long criticized Beijing’s policymakers of keeping the yuan (Chinese currency) artificially cheap to give Chinese exports an unfair advantage in global markets.

  • Explain how China has been able to devalue their currency. The more specific your explanation, the better.

Your initial discussion post must include one outside resource, which may include the Internet or Library, and must be cited according to current APA formatting.