Discuss how debt financing is different from equity financing.
How does debt financing effect cash flow, taxation expenses, and
the balance sheet of a firm?
Discuss pros and cons of debt financing in contrast to equity
financing in capital budgeting. What are the implications of each
for shareholders’ wealth maximization?
In
a relation to ‘capital structure’ explain the relation between debt
financing, equity financing and market value of an organization.
Then, provide two different examples of the relation.
Discuss the costs and benefits of both debt and equity
financing, and the circumstances in which less or more of each
variety of capital would benefit a healthcare organization from a
cost of capital perspective.
Discuss some factors that health services managers must consider
when choosing between debt and equity financing. Consider both
investor-owned and not-for-profit firms in your answer.
Discuss pros and cons of using debt financing versus equity
financing. Support your answer with real world examples and/or
theoretical framework from the assigned readings.
Also, discuss whether or not, all else equal, firms with
relatively volatile sales are able to carry relatively high debt
ratios. Provide an example of a company with relatively
volatile sales.