Abstract
This paper examines how choosing which financing vehicle is best for a company is very important and how equity and debt financing are financial mechanisms by which a firm can raise financial capital. It looks at how the characteristics of each of these two groups depend on three variables: investors' claims on future cash flow, their right to participate in company decisions and their claims on company assets in liquidation. The paper examines the benefits and disadvantages of both.
Outline
Introduction
Characteristics of Equity Financing
Advantages of Equity Financing
Disadvantages of Equity Financing
Characteristics of Debt Financing
Advantages of Debt Financing
Disadvantages of Debt Financing
Contrast Between Equity and Debt Financing
The Capital Structure Decision
The Irrelevance Proposition
Conclusion
References
Appendix

From the Paper
"Equity financing is the act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. Equity (or common stock) offers residual claims. On a balance sheet, equity equals total assets less all liabilities. Equity financing is generally recommended for a business that's experiencing very high growth with high investment risk. The major sources of equity financing include individuals starting the business, friends and family, angel investors, venture capitalists, and public equity markets. Equity can take several forms including preferred stock, common stock, limited partnership interest, and project equity."

Tags:assets, money, liquidation, capital

Abstract
This paper discusses the history and causes of the 2007-2010 global debt crisis and the cost of the crisis to the global economy. The paper examines the regulatory controls and existing compliance and shows how they are inadequate. The paper also looks at some of the initiatives that have been undertaken by governments as a result of the crisis and discusses what more needs to be done to correct the situation and to ensure that such a crisis does not occur in the future. The paper contains graphs.

Table of Contents:
Introduction
Causes of the global debt crisis
Conclusion

From the Paper
"While the above steps are viable for reliving the debt crisis in the world, they may also have negative impact especially in the US. Use of debt to finance the global crisis would increase the national deficit to a level that could not be sustained in the future. The efforts of the federal government to aid the global financial system is only leading to new and significant financial commitments which are either in form of loans, loan guarantees and investment. This does not amount to direct expenditure which can only help improve the economy hence; the strategies may not aid the recovery of the US economy ."

Tags:investment lending equity, mortgage rates

Abstract
This paper discusses the advantages and disadvantages of the use of the sinking fund in corporate bonds from the viewpoint of the corporation and the bondholders. This paper also discusses the advantages and disadvantages of the call provision from the viewpoint of the corporation as well as its bondholders. These elements carry heavy weight when considering expansion into an international market. The corporation's current status and ratings play a big role in what kind of financing is available and what kind of future debt will be acquired. Key members of management must keep all areas of performance in mind when formulating a strategy for entry. With this in mind, the paper also analyzes factors that effect performance such as bonds yield to maturity. The writer explores the issue of risk as a constant factor evident in business. It can be seen as both a positive and a negative. Risk affects all facets of the corporation, not only the foreign subsidiary but also company performance. It is therefore important to include a risk assessment as a part of any global strategy.
Introduction
Role of Debt Over Equity
The Sinking Fund
The Call Provision
Factors Effecting Yield to Maturity
Factors Effecting Risk
Conclusion

From the Paper
"The role of debt over equity is important to consider as a company expands, as it is a true indicator of how the company will succeed. It describes how the company manages its money in its balance sheets. It refers to money the company owes and does not expect to pay off within the next year. In business, there are long term and short term debts. These debts are categorized by how lengthy a repay period there is with the creditor. A good sign that the company is succeeding is when the equity outweighs the debt or that the debt is getting smaller over time. This indicates a certain amount of health within the organizational structure. However, companies with more long-term debt than short-term debt find themselves in trouble because they must continue to pay interest payments and risk having little working capital. It is important a company pay close attention upfront when borrowing money and note the interest rate of the loans as some fall privy to market fluctuation. Long-term debt is more volatile as interest rates can be influenced by economic changes. It is important to analyze how a new international location is doing before committing to entry there. Still interest rates plays a dramatic role in how banks rate a company the ability to pay on time. In this way it benefits the banks more as they are able to "spur innovation to extract return for investors via new structures, some involving high leverage" ("The Financial Stability Conjuncture and Outlook" 51). Debt always works to benefit the banks in this way."

Tags:bonds, sinking, funds, corporate, bonds, market, international

Abstract
This paper summarizes a simulation for examining and calculating a debt to equity mix. It includes, for each major phase in the simulation, a description of the scenario and the recommended solutions along with the logic for the decisions. It also details a summary for the different capital structure concepts addressed in this simulation and discusses why weighted average cost of capital (WACC) is important to an organization. It then discusses the impact that WACC has on capital budgeting and structure.

Outline:
Abstract
Debt-Equity Mix
Simulation Scenario and Recommendations
Importance of WACC to an organization
Impact of WACC on Capital Budgeting and Structure
Conclusion

From the Paper
"Every organization must determine the amount of debt and equity used to fund operations. The Weighted Average Cost of Capital (WACC) is a vital tool for determining the optimal capital structure mix. WACC considers the relative proportions and costs of the debt and equity components to give the overall cost of capital for a firm (UOP Debt-Equity Mix Simulation, 2006 4). Choosing the correct mix of debt and equity optimizes the WACC for the organization. This paper summarizes a simulation for determining appropriate levels of debt and equity. Presented are details of each major phase of the simulation along with a recommended solution and an explanation for the solution. Other capital structuring questions will be addressed such as why the WACC is important to an organization and what affects the WACC has on capital budgeting and structure."

Tags:proportions, budget, balance

Abstract
This paper explains that traditional financial thinking relies on assumptions of certainty, complete knowledge and market efficiency and in this context, financial decisions should be relatively straightforward. In the real world though, many times what is observed deviates greatly from what would be expected using traditional financial thinking. This paper therefore uses different game theory models to more accurately explain observed financial decisions dealing with capital structure, corporate acquisitions and initial public offerings (IPOs).

From the Paper
"Game theory has made great strides in explaining many of the observed phenomena falling under corporate finance. One example is the capital structure decided upon by a firm s management. Capital structure deals with the firm s decision to raise funds through debt versus equity and what ratio of debt to equity should the firm maintain. Modigliani and Miller in 1958 showed that in perfect capital markets (i.e. no frictions and symmetric information) and no taxes a firm could not change its total value by altering its debt/equity ratio; thus capital structure is irrelevant. However in the real world, capital structure is carefully thought about by every company, and it is in fact not irrelevant because taxes do exist and capital markets are not perfect."

Tags:acquisitions, application, bondholder, control, debt, debtholder, equity, games, ipo, merger, ratio, shareholder, shield, tax, theory

Abstract
This paper addresses two issues relating to business. It examines the mechanisms at the Federal Reserve Bank of the United States can use to impact the supply of money. It also examines the primary and secondary market for the sale of shares of stock.

From the Paper
"The Federal Reserve Bank of the United States can use at least two mechanisms to impact the supply of money. According to an essay published online on the How Stuff Works.com website, the most effective tool that the Federal Reserve Bank uses to control the supply of money involves the buying and selling of government securities in its open market operations. The Federal Reserve Bank buys securities when it wants to increase the flow of money into the economy and it sells securities..."

Tags:Introduction, Business, Federal Reserve, Reserve Requirements, Open Market Operations, Securities, Equity, Debt, Inflation, Unemployment, Stocks, Bonds, Brokers, Initial Public Offering

Abstract
The paper provides an introduction to the McDonald's company and examines McDonald's shares, equity ratio, shareholders, dividend policy debt-to-equity ratio and the company's amount of debt. The paper includes tables and a graph as an appendix to the paper.

Outline:
Introduction
Capital Structure

From the Paper
"McDonald's is the world's most famous fast-food chain. It operates and franchises McDonald'srestaurants, which offer various items of fast-food, soft drinks and other beverages. Approximately 70% of McDonald's restaurants are operated by independent franchisors. The number of restaurants in the U.S. has reached saturation and most new McDonald's are now being opened in Europe, Middle East and Asia.
"As of August 2007, McDonald's operated approximately 31.045 restaurants in 118 countries. The company itself employs around 465.000 full-time workers. McDonald's also owns Boston Market restaurant chain and moreover has a minority interest in the Pret-A-Manger, an English coffee and sandwich shop."

Tags:shares, equity, ratio, shareholders, dividend, debt-to-equity

Abstract
This paper looks at the Chevron Corporation's businesses that include petroleum operations, transportation, manufacturing, marketing operations and chemical operations. The paper examines Chevron's market structure and how it operates within an oligopoly and discusses how Chevron is involved in a variety of technology fields that are intent on seeking out, developing and producing both oil and natural gas. The paper also analyzes the cost structure of Chevron, their debt-to-equity ratio, variable costs, price elasticity of demand and how government regulations may affect Chevron's supply and demand. The paper asserts that with the large market share that Chevron has in the energy industry, its diversity regarding technological advances and businesses, and its selling of nonproductive assets, Chevron has a bright future.

From the Paper
"Chevron Corporation operates as an international, integrated energy company and has close to 63,000 employees located throughout the world. It operates in the Oil, Gas, Consumable Fuels industry. Chevron is a Fortune 500, publicly traded corporation with its stock listed with the New York Stock Exchange (CVX). It consolidates different businesses into its corporate operations. These businesses include: petroleum operations; transportation, manufacturing, and marketing operations; chemical operations and a variety of others."

Tags:oligopoly, debt-to-equity, ratio, price, elasticity, of, demand, costs, expenses, expenditure

Abstract
This paper explains that financial analysis of companies plays a vital role in the investment community. The author points out that ratios are a key part of this analytical processes, often revealing numerous aspects of a corporation's inner workings. The paper describes and uses eight key ratios to analyze Exxon Mobil and Chevron companies: current ratio, quick ratio, inventory turnover ratio, average collection period, total asset turnover, debt-to-equity, net profit and price-to-earnings ratio. The author reports that Exxon Mobil fared better on five of these measurement while Chevron only fared better on two. The paper concludes that, if an investor were to consider buying stock in the oil industry, based purely on past financial statements, Exxon Mobil may be the better choice. The paper includes tables.

Table of Contents:
Exxon Mobil and Chevron - Financial Data
Current Ratio
Quick (Acid-Test) Ratio
Inventory Turnover
Average Collection Period
Total Asset Turnover
Debt to Equity Ratio
Net Profit Margin
Price to Earnings Ratio
Conclusion

From the Paper
"One of the more important ratios, net profit margin, is an overall indicator of the profitability of a company. It is determined by taking net profit after taxes and dividing by sales. Exxon Mobil reported, in millions, $36,130 and $39,500 for net profit after taxes; and $358,955 and $365,467 in sales for the years 2005 and 2006, respectively. When calculated, the net profit margin was 10.1% for 2005 and 10.8% for 2006. This represents an overall increase in the efficiency of management and indicates that over a one-year period that Exxon Mobil has become more profitable."

Tags:debt, equity, problems, turnover, investors

Abstract
This research examines the pricing of initial public offerings (IPOs). As addressed in this research, IPOs refers to equity stocks issues when a corporation first initiates public trading of its shares. Initial public offers of corporate debt are not included in this definition

From the Paper
"IPO PRICING: AN EXPLORATION AND AN ASSESSMENT

Introduction
This research examines the pricing of initial public offerings (IPOs). As addressed in this research, IPOs refers to equity stocks issues when a corporation first initiates public trading of its shares. Initial public offers of corporate debt are not included in this definition.

The thesis explored in this research is that IPOs frequently are incorrectly priced intentionally either higher or lower that the sustainable market value of the equity shares. Included in this exploration are considerations of the models used to evaluate IPO pricing, the evidence of incorrect IPO pricing, any evidence that specific investment banks or underwriters are linked consistently with incorrect IPO pricing, the ..."