Week 4 Discussion 1 & 2 BUS 592/626

Week 4 - Discussion Forum 2

Required Resources

Text

Block, S. B., Hirt, G. A., & Danielson, B. R. (2019).  Foundations of financial management  (17th ed.) . Retrieved from https://www.vitalsource.com/

· Chapter 9: The Time Value of Money

· Chapter 16: Long-Term Debt and Lease Financing

 

Recommended Resources

Multimedia

Edspira. (2017, June 18).  Lease accounting overview (the new lease rule) (Links to an external site.) [Video file]. Retrieved from https://youtu.be/X1AMT1IhWaM

· This video provides details about leases and may assist you in your Long-Term Debt and Lease Financing discussion forum this week. This video has closed captioning and a transcript. Accessibility Statement (Links to an external site.) Privacy Policy (Links to an external site.)

Edspira. (2014, August 29).  Long-term liabilities in financial accounting (Links to an external site.) [Video file]. Retrieved from https://youtu.be/dnaSVCa-WVE

· This video provides details about leases and may assist you in your Long-Term Debt and Lease Financing discussion forum this week. This video has closed captioning and a transcript. Accessibility Statement (Links to an external site.) Privacy Policy (Links to an external site.)

Fahrat’s Accounting Lectures. (2016, February 22).  Time value of money | Intermediate accounting | CPA exam FAR | Chp 6 p 1 (Links to an external site.) [Video file]. Retrieved from https://youtu.be/VzHBV8nLVCY

· This video provides details about the time value of money and may assist you in your The Time Value of Money discussion forum this week. This video has closed captioning and a transcript. Accessibility Statement (Links to an external site.) Privacy Policy (Links to an external site.)

Finance & Accounting Videos by Prof Coram. (2017, April 21).  Time value of money basics and present and future value using tables (Links to an external site.) [Video file]. Retrieved from https://youtu.be/3fa3XY4TQk4

· This video provides details about the time value of money and may assist you in your The Time Value of Money discussion forum this week. This video has closed captioning and a transcript. Accessibility Statement (Links to an external site.) Privacy Policy (Links to an external site.)

INSTRUCTION

Prior to beginning work on this discussion, read Chapter 16: Long-Term Debt and Lease Financing in your textbook.

Corporate debt has been increasing dramatically in recent years. Most people view debt in a negative light. However, with a little balance, debt can be beneficial. For this discussion, address the following:

· Discuss the benefits and drawbacks of corporate debt.

· Explain how financial managers can assess the company’s debt structure and determine how reasonable it is.

· Describe the factors one should consider when deciding if a company’s debt should be increased or decreased.