Assignment 2: Business Financing and the Capital Structure Question # 00041174 Posted By: jia_andy Updated on: 01/10/2015 05:26 AM Due on: 07/31/2015 Subject Finance Topic Finance Tutorials: 1 See full Answer Question Assignment 2: Business Financing and the Capital StructureDue Week 8 and worth 240 pointsBusinesses have to make many financial decisions that have a direct impact on operations andthe ability to successfully compete in the marketplace. Base your writing on the informationfrom the course coupled with information located in the Strayer databases or Internet.Write a two to three (2-3) page paper in which you:1.Assume that you are financial advisor to a business. Describe the advice that you would give tothe client for raising business capital using both debt and equity options in today’s economy.Outline the major advantages and disadvantages of each option.2.Summarize the advice that you would give the client on selecting an investment banker toassist the business in raising this capital.3.Explain the historical relationships between risk and return for common stocks versuscorporate bonds. Explain the manner in which diversification helps in risk reduction in aportfolio. Support response with actual data and concepts learned in this course.4.Use at least one (1) quality references. Note: Wikipedia and other Websites do not quality asacademic resources. However, you may use data sources, such as Yahoo Finance.Your assignment must follow these formatting requirements:•Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on allsides; citations and references must follow APA or school-specific format. Check with yourprofessor for any additional instructions.•Include a cover page containing the title of the assignment, the student’s name, the professor’sname, the course title, and the date. The cover page and the reference page are not included in therequired assignment page length.The specific course learning outcomes associated with this assignment are:•Describe the characteristics and valuation of stocks and bonds, and how each is a keycomponent in the financing of corporations.•Describe the key elements of the securities markets, and how the markets drive financialtransactions, decision making, and risk analysis.•Use technology and information resources to research issues in finance.•Write clearly and concisely about finance using proper writing mechanics Rating: 4.9/5
Solution: Assignment 2: Business Financing and the Capital Structure