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Business, 23.11.2020 06:10 kiki4832

Smith’s Shoe Company is a successful shoe manufacturer with many employees, lots of equipment, and a good amount of money in the bank. Now, the owner, Mr. Smith, wants to create a new line of shoes. He knows that there are many things to keep in mind when making such a big investment decision. 1.How can Smith’s Shoe Company determine whether it should invest in the new line of shoes? What is this process called? What sort of decision does the company have to make?

2.If the company opts to invest in the new line of shoes, what can it use as equity?

3.If the company decides to ask investors to help finance the project, what aspects of working capital management should it monitor carefully?

4.Let’s assume that the company moves ahead with the new shoe line and makes a profit. What decisions does it have to make regarding shareholders?

(please help i have no idea what to write for these questions)

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