Business Financing and
the Capital Structure
Businesses have to
make many financial decisions that have a direct impact on operations and the
ability to successfully compete in the marketplace. Write a two to three (2-3)
page paper in which you:
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 option.
Summarize the advice
that you would give the client on selecting an investment banker to assist the
business in raising this capital.
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
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 format.
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