How Assets Organization and Funding Methods combination Impacts the Cost of the capital and the Financial Return

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ACKNOWLEDGMENTS

The Shadow-Job opportunity I had within the SILICON VALLEY CONSTRCUTIONS COMPANY was a great chance for learning and professional development. Therefore, I consider myself as a very lucky individual as I was provided with an opportunity to be a part of rich experience. I am also indescribably grateful for having a chance to meet and collaborate during all steps of the way with these professional people who led me within this internship period.

By the following words we would like to express our deep appreciation to those who have contributed and allowed us to achieve this final course projects, Warm and special thanks to     Mrs. Amina MOSLI who despite being extraordinarily busy with her duties, took time out to hear, guide and keep me on the correct path and allowing me to carry out my project at their esteemed organization and extending during the training.

 Mr. Abderrahman MALIKI, a special thanks to our final course project supervisor for his advice and consistent support during all the steps of the way leading to the present fruitful work.

It is my radiant sentiment to place on record my best regards, deepest sense of gratitude to all the National School of Business and Management professors and administrative stuff for their careful and precious guidance which were extremely valuable for my study both theoretically and practically.

I perceive as this opportunity as a big milestone in my professional career development. I will strive to use gained skills and knowledge within this internship in the best possible way, and I will continue to work to get them to the next level, to attain desired career objectives. Hope to continue cooperation with all of you in the future.  

EXECUTIVE SUMMARY

 INTRODUCTION AND GENERAL OVERVIEW: 

 Adjusting cash and settlement policy, finding the most adequate funding methods and elaborating a funding schedule commonly called funding plan, these technics are missions to which financial managers and their subordinates pay a very close attention as long as they can unarguably impact the financial and the economic return in the short, mid and long range. In my 4th internship period and my first one within the SILICON VALLEY CONSTRUCTION COMPANY, my attention was attracted by the fact that funding methods can play in the favor of the company or against it, and that the variety of these methods is, in fact, an opportunity that financial managers should take advantage of, thus my traineeship problematic to which I will be trying to answer and in concordance with both my supervisor within the company Mrs. Amine MOUSLIH and my academic supervisor Mr. Abderrahman MALIKI, is as follows: HOW FUNDING METHODS EVALUATION CAN IMPACT THE FINANCIAL RETURN ?      

FINDINGS AND DEPLOYED ANALSIS TECHNICS:

Fortunately, the company was involved in 3 different projects that were financed using a combination of a variety of funding methods, thing that has allowed my analysis to be large and complete comporting all of the 3 funding methods the company was adopting and working with. Bank loans (Emprunt Bancaire) Angel Investors (Capitaux Propres) and leasing (Crédit-Bail). Analyzing and comparing the supported of each one of these methods and the financial result of each one of the projects the company was involved in makes a clear idea to conclude each of the methods is best in term of cost and financial return. Other calculations include rates of return on Shareholders’ Equity and Total Assets and earnings per share to name a few. All calculations can be found in the appendices. Results of data analyzed show that all ratios are significantly dispersed. Showcasing a remarkable weakness of Angel Investors (Capitaux Propres) in comparison with the bank loan funding method. s  

Analysis and conclusions are based on pure mathematic calculations of Financial Ratios and respecting a sort of fundamental notions and finance basis.  

CONCLUSION AND RECOMMENDATIONS:

The report finds that the used funding methods combination is relatively weak since the company is missing an opportunity to get funded cheaper that the cost supported in its current situation in the light of a very comfortable level debt (seuil d’endettement). Recommendations discussed include:

Adjusting funding methods combination.

Take advantage of the comfortable debt of level.

Negotiate the actual banks loan rates.  

EXECUTIVE SUMMARY

 INTRODUCTION AND GENERAL OVERVIEW: 

 Adjusting cash and settlement policy, finding the most adequate funding methods and elaborating a funding schedule commonly called funding plan, these technics are missions to which financial managers and their subordinates pay a very close attention as long as they can unarguably impact the financial and the economic return in the short, mid and long range. In my 4th internship period and my first one within the SILICON VALLEY CONSTRUCTION COMPANY, my attention was attracted by the fact that funding methods can play in the favor of the company or against it, and that the variety of these methods is, in fact, an opportunity that financial managers should take advantage of, thus my traineeship problematic to which I will be trying to answer and in concordance with both my supervisor within the company Mrs. Amine MOUSLIH and my academic supervisor Mr. Abderrahman MALIKI, is as follows: HOW FUNDING METHODS EVALUATION CAN IMPACT THE FINANCIAL RETURN ?      

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