Assignment 2: Business Financing and the Capital Structure
Due Week 8 and worth 240 points
Businesses have to make many financial decisions that have a
direct impact on operations and the ability
to successfully compete in the marketplace. Base your
writing on the information from the course coupled
with information located in the Strayer databases or
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 to
the client for raising business capital using both debt and
equity options in today’s economy.
Outline the major advantages and disadvantages of each
2. Summarize the advice that you would give the client on
selecting an investment banker to assist
the business in raising this capital.
3. Explain the historical relationships between risk and
return for common stocks versus corporate
bonds. Explain the manner in which diversification helps in
risk reduction in a portfolio. Support
response with actual data and concepts learned in this
4. Use at least one (1) quality references. Note: Wikipedia
and other Websites do not quality as
academic 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 all
sides; citations and references must follow APA or
school-specific format. Check with your
professor for any additional instructions.
Include a cover page containing the title of the
assignment, the student’s name, the professor’s
name, the course title, and the date. The cover page and the
reference page are not included in
the required assignment page length.
The specific course learning outcomes associated with this