Debt Level

we combine components we have explored during the last several weeks: Stocks, Bonds and Risk.  The focus of this week is how a firm structures its financing (debt, equity, retained earnings). A firm has to trade-off return, risk, and the timing of inflows and outflows.  Let’s see how much you have learned….   Individual Discussion Instructions  Check out the list of statements below. Each individual can choose one statement to discuss- each may be chosen by only two students within each group Please provide an explanation of the reasoning of the statement- 1-2 sentences Now, using what you know about return, risk, and timing, unpack the statement.  Provide a discussion – why are they incorrect or incomplete?   (hints are provided below each statement) – 1-2 sentence. Example:  Statement: “Derivatives are financial weapons of mass destruction” a view of Warren Buffet This is an opinion that is motivated by large financial losses that derivatives can cause for investors and firms. For example, Amaranth Advisors used natural gas derivative contracts to speculate on nat-gas leading to large losses for their investors and disruption of the nat-gas market. However, derivative contracts can also be used for cash flow smoothing and price stability (example: Cotton futures). This allows hedgers to increase cash flow stability.  Both speculators and hedgers participate in both sides of the contracts to provide a liquid well-functioning market. Berkshire Hathaway utilizes Derivative Contracts in its investment strategies. In conclusion, they can be dangerous when used incorrectly or with malicious intent, and can also be helpful for the agricultural, energy, and financial economic participants List of Statements- paste into group wiki page and each student chooses one to discuss It is better to use a shorter mortgage term than a longer mortgage term to save on interest Hint: What are the benefits of a longer mortgage? It is best to pay for a house in cash because borrowing is expensive Hint: What else can a firm do with cash Firms should not hold so much debt Hint: why might a firm use debt rather than other types of financing The firm went bankrupt due to a decrease in revenue Hint:  what other factors have to be true for this to be the case?  Think about variables on the Income Statement The covid-19 pandemic caused the firm to go bankrupt Hint: the pandemic is just the situation, what other factors have to be true for this to be the case The firm was carrying too much debt, which led to bankruptcy Hint: Does a bankruptcy occur because of the debt level?  Connect the dots here The firm has a large number of assets and is large, making it a very profitable successful firm Hint: how are assets and income related?

Struggling to find relevant content or pressed for time? – Don’t worry, we have a team of professionals to help you on
Debt Level
Get a 15% Discount on this Paper
Get Help Now
MyCoursebay
Get real help, Real fast
Pages (550 words)
Approximate price: -

Why Hire a Professional Essay Writer from MyCoursebay

Quality Urgent Essays

MyCoursebay online platform provides the best essay writing service ever received elsewhere, thanks to our professional essay writers. Experience gained in the 10+ years of being in the assignment writing industry is also an added advantage.

Professional and Experienced Academic Writers

A lot is done to maintain us as the best essay writing service provider. Besides owning a degree from a recognized university, a writer must pass the rigorous tests we take them through before they are considered eligible to offer urgent essay help on our website.

Affordable Urgent Assignment Help

Who said a reliable website should not be cheap also? While it is human nature to associate prices with quality, that does not always work. At mycoursebay.com, we guarantee you cheap and urgent essay help without compromising the quality.

24/7 Available Urgent Essay Writing Service

Whether it is a ‘write my essay for me cheap’ or ‘edit my essay’ order you want to request, always feel free to reach us at any time of the day. Our experts work in shifts to ensure that you access urgent essay writing services at any time of the day.

Plagiarism Free Essays Online

The punitive measures that come with plagiarized content are so harsh, and we understand that. We consequently ensure to write each client’s papers from scratch no matter how urgent the essay is. To acknowledge borrowed content, our quick writer references and cites the work.

Wow Customer Support 24/7

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

So much stress and so little time? Take care of yourself: let us help you with your tasks. We offer all kinds of writing services.

Essays

Custom Essay Writing Services

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission and Business Papers

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Editing

Editing and Proofreading

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Coursework

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.