Week 4,5, and 6 Discussion 1 & 4

Week 5 - Discussion Forum 1

Text

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

· Chapter 16: Long-Term Debt and Lease Financing

· Chapter 17: Common and Preferred Stock Financing

· Chapter 18: Dividend Policy and Retained Earnings

 

Recommended Resources

Articles

Bary, A. (2018, October). Opportunities abound in preferred stock. Barron’s, 98(43), 19. Retrieved from https://www.barrons.com/

· The full-text version of this article is available through the ProQuest Central database in the Ashford University Library. This article discusses the advantages of preferred stock and why this may make a wise investment choice. This article may assist you in your Advising on Long-Term Financing Decisions Scenario discussion forum and the Week 5 Connect Homework Problems assignment this week.

Curry, P. (2007, March 1). 10 lethal real estate investing mistakes (Links to an external site.). Retrieved from https://www.bankrate.com/finance/money-guides/10-lethal-mistakes-for-real-estate-investors-1.aspx

· This article provides information about common mistakes made by investors and may assist you in your Week 5 Journal. Accessbility Statement does not exist. Privacy Policy (Links to an external site.)

Erbschloe, M. (2019). Dividend policy. In Salem Press encyclopedia. Retrieved from https://www.salempress.com/

· The full-text version of this article is available through the EBSCOhost database in the Ashford University Library. This article examines the payment of stockholder dividends and how policies are set or how practices evolve that govern paying dividends. The article touches on how the Sarbanes-Oxley Act of 2002 impacts this area. The article also discusses some specific corporate scandals and may assist you in your Advising on Long-Term Financing Decisions Scenario discussion forum and the Week 5 Connect Homework Problems assignment this week.

Kenton, W. (2019, April 11). Rule of 72 definition (Links to an external site.). Retrieved from https://www.investopedia.com/terms/r/ruleof72.asp

· This article provides information about the rule of 72 and may assist you in your Week 5 Journal. Accessibility Statement does not exist. Privacy Policy (Links to an external site.)

Lim, P. J. (2015, July). The right way to invest for growth. Money, 44(6), 62–67. Retrieved from https://www.barrons.com/magazine?mod=BOL_HAMNAV

· The full-text version of this article is available through the EBSCOhost database in the Ashford University Library. This article presents a panel of experts who discuss the importance of dividends. The panel comments on dividend growth and debates various real-life companies and discusses the impact of dividend policies on the company from an investor perspective. This article may assist you in your Advising on Long-Term Financing Decisions Scenario discussion forum and the Week 5 Connect Homework Problems assignment this week.

McCain, B. (2015, June 29). Effective investment diversification is not as simple as most think (Links to an external site.). Forbes. Retrieved from https://www.forbes.com/sites/brucemccain/2015/06/29/effective-investment-diversification-is-not-as-simple-as-most-think/#42cc36e07e8d

· This article provides information about diversification of investments and may assist you in your Week 5 Journal. Accessibility Statement does not exist. Privacy Policy (Links to an external site.)

Newton, H. (2019). Long-term debt. In Salem Press encyclopedia. Retrieved from https://www.salempress.com/

· The full-text version of this article is available through the EBSCOhost database in the Ashford University Library. This article describes long-term debt in detail. The article also explains how to read a balance sheet, provides useful calculation in evaluating a company’s long-term debt, and decisions to expand debt. This article may assist you in your Advising on Long-Term Financing Decisions Scenario discussion forum and the Week 5 Connect Homework Problems assignment this week.

Patton, M. (2015, April 28). Five basics you should definitely know about the stock market (Links to an external site.). Forbes. Retrieved from https://www.forbes.com/sites/mikepatton/2015/04/28/five-basics-you-should-definitely-know-about-the-stock-market/#201d304a7efa

· This article provides information about investing in the stock market and may assist you in your Week 5 Journal. Accessibility Statement does not exist. Privacy Policy (Links to an external site.)

Rockwell, S. (2018, March). When to beware of debt financing: This source of capital has become a more common way to fund growth, but it has its downsides. Nation’s Restaurant News, 52(4). Retrieved from https://www.nrn.com/

· The full-text version of this article is available through the EBSCOhost database in the Ashford University Library. This article discusses debt, specifically in the restaurant industry. While it is narrowly focused, the article is easy to understand and gives specific calculations on whether debt is good or bad and how leverage is involved. This article may assist you in your Advising on Long-Term Financing Decisions Scenario discussion forum and the Week 5 Connect Homework Problems assignment this week.

Schaefer, S. (2016, January 5). 10 things you absolutely need to know about stocks (Links to an external site.). Forbes. Retrieved from https://www.forbes.com/sites/steveschaefer/2016/01/05/10-things-you-absolutely-need-to-know-about-stocks/#18a3db293f57

· This article provides basic information about purchasing stocks and may assist you in your Week 5 Journal. Accessibility Statement does not exist. Privacy Policy (Links to an external site.)

Segal, T. (2019, February 21). What is the quickest, easiest, and cheapest way to buy a bond? (Links to an external site.) Retrieved from https://www.investopedia.com/ask/answers/08/how-to-buy-a-bond.asp

· This article provides information about purchasing bonds and may assist you in your Week 5 Journal. Accessibility Statement does not exist. Privacy Policy (Links to an external site.)

Tuchman, M. (2016, June 3). Investing basics: Diversification for dummies (Links to an external site.). Forbes. Retrieved from https://www.forbes.com/sites/mitchelltuchman/2016/06/03/investing-basics-diversification-for-dummies/#2ade162c58bc

· This article provides information about diversification and may assist you in your Week 5 Journal. Accessibility Statement does not exist. Privacy Policy (Links to an external site.)

Uncle Pipeline. (2015). The advantages of long term loans (Links to an external site.). Retrieved from https://www.finpipe.com/the-advantage-of-a-long-term-loan/

· This article describes the advantages of long-term debt and may assist you in your Advising on Long-Term Financing Decisions Scenario discussion forum and the Week 5 Connect Homework Problems assignment this week. Accessibility Statement does not exist. Privacy Policy does not exist.

United States Securities and Exchange Commission. (2007, February 5). Beginner’s guide to financial statement (Links to an external site.). Retrieved from https://www.sec.gov/reportspubs/investor-publications/investorpubsbegfinstmtguidehtm.html

· This article explains the basics of financial statements and may assist you in your Advising on Long-Term Financing Decisions Scenario discussion forum and the Week 5 Connect Homework Problems assignment this week. Accessibility Statement (Links to an external site.) Privacy Policy (Links to an external site.)

Multimedia

Alanis Business Academy. (2013, March 17).  How bonds work | Personal finance series (Links to an external site.)  [Video file]. Retrieved from https://youtu.be/Bg86X9vx3yU

· This video gives information on bonds and describes how bonds work from both the issuers’ and buyers’ perspectives. This video may assist you in your Advising on Long-Term Financing Decisions Scenario discussion forum and the Week 5 Connect Homework Problems assignment this week. This video has closed captioning and a transcript. Accessibility Statement (Links to an external site.) Privacy Policy (Links to an external site.)

Alanis Business Academy. (2013, July 22).  Common and preferred stock personal | Finance series (Links to an external site.) [Video file]. Retrieved from https://youtu.be/Q_qQ_Ztck-A

· This video provides information on common and preferred stock and describes how they work from both the issuers’ and buyers’ perspectives. This video may assist you in your Advising on Long-Term Financing Decisions Scenario discussion forum and the Week 5 Connect Homework Problems assignment this week. This video has closed captioning and a transcript. Accessibility Statement (Links to an external site.) Privacy Policy (Links to an external site.)

The Motley Fool. (2019, January 28).  How Netflix’s weird approach to debt helped it change TV (Links to an external site.) [Video file]. Retrieved from https://youtu.be/E_4A7gmlzts

· This video discusses Netflix’s current debt and how the debt has grown throughout the years. Netflix is a popular company, and the analyst explores the company’s long-term debt situation. This video may assist you in your Advising on Long-Term Financing Decisions Scenario discussion forum and the Week 5 Connect Homework Problems assignment this week. This video has closed captioning and a transcript. Accessibility Statement (Links to an external site.) Privacy Policy (Links to an external site.)

Skillshare. (2015, October 13).  Understanding debt vs. equity financing with bond street (Links to an external site.) [Video file]. Retrieved from https://youtu.be/cg9RgzYzrK8

· This video explains the difference between debt and equity financing. The author discusses the pros and cons of each. This video may assist you in your Advising on Long-Term Financing Decisions Scenario discussion forum and the Week 5 Connect Homework Problems assignment this week. This video has closed captioning and a transcript. Accessibility Statement (Links to an external site.) Privacy Policy (Links to an external site.)

Web Pages

BiggerPockets. (n.d.). Chapter 1: How to invest in real estate: An introduction (Links to an external site.). Retrieved from https://www.biggerpockets.com/real-estate-investing/introduction

· This web page provides information about how to invest in real estate and may assist you in your Week 5 Journal. Accessibility Statement does not exist. Privacy Policy (Links to an external site.)

Investor.gov. (n.d.). Mutual funds (Links to an external site.). Retrieved from https://www.investor.gov/introduction-investing/basics/investment-products/mutual-funds-and-exchange-traded-funds-etfs

· This web page provides information about mutual funds and may assist you in your Week 5 Journal. Accessibility Statement does not exist. Privacy Policy (Links to an external site.)

Websites

Nasdaq (Links to an external site.). (https://www.nasdaq.com/)

· This website provides information about NASDAQ which is an American stock exchange. This website may assist you in your Week 5 Journal. Accessibility Statement does not exist. Privacy Policy (Links to an external site.)

New York Stock Exchange (Links to an external site.). (https://www.nyse.com/index)

· This website provides the New York Stock Exchange and may assist you in your Week 5 Journal. Accessibility Statement does not exist. Privacy Policy (Links to an external site.)

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Instruction

Prior to beginning work on this discussion forum, read Chapters 16, 17, and 18 in the Foundations of Financial Management texbook.

Assume you are the CFO of a medium-sized company and you are advising the CEO on some upcoming strategic initiatives that will have long-term implications. In other words, these are important decisions.

For your initial discussion forum post, address the following questions posed by the CEO:

· It appears we may need to raise more capital. Is expanding debt a good idea? Why or why not and should our given assets impact this decision?

· In our economic environment, should we issue bonds, common stock, or preferred stock? What would be some pros and cons?

· Or should we forego this immediate opportunity and buy back some of our outstanding bonds or repurchase some of our common stock? What market conditions would make this a good move; what might be some pros and cons?

· Are we obligated to pay our shareholders a dividend?

Your initial response should be a minimum of 300 words. Graduate school students learn to assess the perspectives of several scholars. Support your response with at least one scholarly and/or credible resource in addition to the text.