Company Cash Flow Discussion Replies

Company Cash Flow

There are several ways in which an organization can raise funds to assist with current and future cash flow. The promise of an industry changing successful future product allows for more flexibility in which to obtain additional funds.
The ability to leverage intangible assets combined with potential new stock issuance and capital rationing can help close the gap between the end of cash flow and the revenue streams brought in with the new product. As the CFO, we can call on the marketing team to begin to promote the abilities of the new product and educate the market on how the changes can benefit the consumer to generate interest. With an increase in interest in the new product, the firm can evaluate issuing additional stock to increase cash flow and obtain the additional funding to maintain the organization outside of 6 months. There could be several issuances of new stock over the course of time to ensure that the market is not over diluted and decrease the current stock price (Contributor, 2020). The level of interest generated will rely on how effectively the new innovative product is communicated to the market. If the details and benefits are truly industry changing and well communicated, the stock price and interest in new stock issued will provide additional cash flow to help maintain the firm (Contributor, 2020). By adjusting the market perception of the firm, we can add funding through intangible assets that are tough to quantify but can drastically improve the market value.
Another internal measure to help extend the cash on hand is through capital rationing. Capital rationing allows for organizations to examine new projects and place restrictions more thoroughly on new investments (Hayes, 2020). In this situation, this would be imposed by the firm and constitute soft rationing to ensure that any additional investments or new projects undertaken are worth the returns on investment (Brealey et al., 2020). The combination of properly promoting the industry changing product, new stock issuance to support growing interest and provide additional funding, and properly executed capital rationing should help to extend cash flows until the company can see gains from the new product.


Brealey, R. A., Myers, S. C., & Marcus, A. J. (2020). Fundamentals of corporate finance. McGraw-Hill Education.
Contributor, C. (2020, August 10). Pros & Cons of Issuing Common Stock. Small Business –
Hayes, A. (2020, December 14). Introduction to Capital Rationing. Investopedia.,specific%20portions%20of%20a%20budget.

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
error: Content is protected !!
Open chat
You can contact our live agent via WhatsApp! Via + 1 929 473-0077

Feel free to ask questions, clarifications, or discounts available when placing an order.

Order your essay today and save 30% with the discount code GURUH