Verified Document

Capital Decision Making A Decision As A Essay

Capital Decision Making a decision as a venture capitalist, whether as a director/adviser for a venture capital firm or as an individual investor looking for a substantial investment opportunity, requires a great deal of consideration on various levels. Before a decision to invest is made, a careful consideration of the quantitative and qualitative aspects of a company must be undertaken, and the potential payoff of any investment must be weighed against the risks identified both within the company and in its operating environment. The following paragraphs will present a brief analysis of two publicly traded companies that are well-established, yet are also potentially large investment opportunities for an entity with an appropriate amount of capital. The risks and current states of these companies will be assessed along with other details and information in order to determine which company represents the best investment.

pSividia

pSividia Corp., founded in 1987, specializes in developing and producing drug-delivery devices and technologies for use in a variety of situations and to treat a number of specific conditions (Yahoo Finance 2011). The company currently has no debt and a current ratio above 16, making it highly solvent, yet at...

Revenues have also taken a major plummet in the past year, and there is a significant difference between the current and projected price-to-earnings ratios (Yahoo Finance 2011).
In addition to the internal financial and capital structure issues that can be noted in the company from a brief overview of its key statistics and figures, there are some environmental risks that the company is facing. Though the company has designed and produced a variety of products, each individual product requires a great deal of money and time in the development and testing phases due in part to the regulatory environment, and has limited usefulness and marketability once approved for sale due to the specificity of most of their products (Yahoo Finance 2011). The unique and rare nature of the products made by the company, of course, enable a premium to be charged for them, but a minor glitch in the development of a single product or the entrance of any pharmaceutical, technology, or medical breakthrough that renders any product obsolete can be disastrous for the company's revenue stream and ultimate profitability.…

Sources used in this document:
References

Yahoo Finance. (2011). PSVD. Accessed 2 June 2011. http://finance.yahoo.com/q/pr?s=PSDV+Profile

Yahoo Finance. (2011). SMED. Accessed 2 June 2011.

http://finance.yahoo.com/q/pr?s=SMED+Profile
Cite this Document:
Copy Bibliography Citation

Related Documents

Capital Decision-Making It Presently Little
Words: 1647 Length: 6 Document Type: Research Paper

" (Kinnunen, 2004) the work of Kaplan and Schroar (2003) states findings that the past performance is highly relative to capitals flows to private equity funds. The work of Mishra, Kemmerer, and Shenoy entitled: "Managing Venture Capital Investment Decisions: A Knowledge-Based Approach" relates the building of a causal map of the investment decision through use of interviewing venture capitalists and then converting this information into a "causal Bayes net" which are

Capital Project Analysis
Words: 1319 Length: 4 Document Type: Research Paper

Capital Project According to the AMA, capital budgeting is "the decision-making process used by companies to evaluate long-term investments in large capital assets" (Hampton, 2011). Zeit (2013) makes the point that construction projects are included in the category of capital investment decisions, and that designers and architects are often involved. Reiter et al. (2000) argue that because of their size and critical strategic nature, "capital investment decisions are among the most

Capital Opening Summary It Is
Words: 789 Length: 3 Document Type: Essay

This would involve winding down investment banking to focus on venture capital. A second option is to start a fund in Russia, with local partners there, to capitalize on that country's telecommunications market. The company could be split under the second scenario into three different divisions. The third option is to retain the status quo, which has generally been successful, but offers limited upside compared to the other options. It

Decision at Hand Is Whether
Words: 761 Length: 2 Document Type: Case Study

These include lack of emergency calling, call security, and sound quality. Because VoiP providers, including Skype, are a bypass to the conventional phone system, they do not typically provide emergency calling services (Schueneman, no date). Thus, the firm will have a more difficult time accessing police or fire services. It must be considered how often such services are needed by the office. The second consideration is with respect to call

Amazon Capital Decisions
Words: 2243 Length: 6 Document Type: Essay

There are many firms that exist and operate within the capital management realm. Some companies operate and expand via their internal income and operations. There are other firms that are not currently self-solvent. However, the latter is commonly able to expand through capital investment and fundraising. The goal with such firms, of course, is to ramp up business levels, pricing structures and so forth so as to get to a

Capital Structure the Three Companies Selected for
Words: 1475 Length: 5 Document Type: Essay

Capital Structure The three companies selected for this report are eBay, Clorox, and Darden Restaurants. eBay is an online auction website, acting as an intermediary between buyers and sellers. Clorox is described as being a manufacturer and marketer of consumer and institutional cleaning and household products. Some of its brands are the eponymous cleaners, Brita water filters, Burt's Bees and a variety of other brands as well. Darden Restaurants operates casual

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now