Most firms use equity financing to acquire assets

Assignment Help Business Management
Reference no: EM133263423

Most firms use equity financing to acquire assets. Debt Financing are the lengthy term financial loans normally are due within 3 to 7 years but can be stretched to 15 or 20 years. A huge benefit is that the advances are tax deductible. The loan contract can be in two distinct documents which are a promissory note that requires the debtor to reimburse the loan in specified installments. Another is a term-loan agreement. A secured bond that is issued with some form of collateral, such as real estate. An unsecured bond that is financed only by the reputation of the issuer. The organization raising needed funds through borrowing to increase the firm's percentage of the return.

Versus equity there are the 3 potential ways to obtain equity financing which are selling stocks, from protected earnings, from venture capital. The cost of capital is the rate of return a company must earn to meet the demands of its lenders and expectations of its equity holders.

The loan I would utilize would be the Debt Financing loan since the loan interest is tax deductible. The unsecure bond would be beneficial by being financed only by my character.

Reference no: EM133263423

Questions Cloud

Explain the biopsychosocial model : "We know that when we are stressed, our immune system is weakened, and we are more likely to get sick." This quotation illustrates which level of the Biopsychos
Differences between a buyer and a trafficker : Using the resources provided, as well as through your own research, and discuss the following:
What is a native american berdache : What is a Native American berdache? What is a hijras from India? What special social and religious roles to they each play in their cultures?
Difference between automatic and controlled processes : Describe the difference between automatic and controlled processes, citing at least three different characteristics for each process. Next, describe how the dif
Most firms use equity financing to acquire assets : Most firms use equity financing to acquire assets. Versus equity there are the 3 potential ways to obtain equity financing which are selling stocks,
Explain the roles of the id : Explain the roles of the id, ego, and superego according to Freud's view of the psyche. Give examples of how these concepts may be useful in counseling.
Social learning theory by albert bandura : What could be a great article within the last 15 years to critique that involves the social learning theory by Albert Bandura?
Identify punishments and rewards that shaped behavior : How do I Identify one thing I've been conditioned to do. Explain if the behavior was developed through classical (involuntary responses) or operant conditioning
What intellectual ancestors most influenced sapir and whorf : What intellectual ancestors most influenced Sapir and Whorf? When and where do we find predecessors of linguistic relativity?

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd