Instructions
Compare and contrast the use of debt versus equity investment as a source of capital. Address the short- and long-term costs inherent with debt and equity financing and the ability or limitations on a company’s ability to receive either equity or debt funding. Include real-world examples of where the use of either source of capital funded significant growth and how equity or debt turned out to be the wrong choice for the company.
Length: Post an initial 200-word response by Wednesday and two responses to other students' postings by Sunday.
References: At least 1 peer-reviewed scholarly journal article from the Library.
Module 2 Required Resources
Textbook
Brigham, E. F., & Ehrhardt, M. C. (2020). Financial management: Theory and practice (16 ed.). Australia; Boston, MA: Cengage Learning.
Chapter 16
Chapter 18
Chapter 19
Chapter 20
Access your textbook via the Bookshelf tab in the top navigation bar of your course.
Articles
- Operating Lease as Alternative Financing for REITs: a Viable Strategy or a Sign of Trouble? This link opens in a new windowDevos, E., Devos, E., Li, H., & Tsang, D. (2022). Operating Lease as Alternative Financing for REITs: a Viable Strategy or a Sign of Trouble? The Journal of Real Estate Finance and Economics, 65(2), 153–180. https://doi.org/10.1007/s11146-021-09820-w
- Making Sense of Corporate Venture Capital This link opens in a new windowChesbrough, H. (2002, Mar). Making sense of corporate venture capital. Harvard Business Review. https://hbr.org/2002/03/making-sense-of-corporate-...
Videos
- Sources of Capital This link opens in a new windowKeisler, J. (2023). Sources of Capital [Videos]. Youtube.
- Go Public or Go Home: The Pros and Cons of IPOs This link opens in a new windowBloomberg. (2013). Go public or go home: The pros and cons of IPOs[Videos]. Youtube.
- Cash Conversion Cycle Explained This link opens in a new windowLearn Accounting Finance. (2022). Cash conversion cycle explained[Video]. Youtube.