Reference no: EM132082871

Question FINAL QUESTIONS TO ANSWER FOR WEEK SIX

1. What are the advantages and disadvantages of owning common stock and preferred stock? Which seems more attractive to you and why?

2. Compare and contrast the features of common stock and preferred stock

3. Describe the characteristics of long-term debt.

4. Distinguish between floating rate and fixed rate corporate bonds.

5. Describe the stages in venture capital financing.

6. Explain the methods used to issue new securities.

7. Explain the role of investment banks in the underwriting process.

8. You have been engaged on a consulting contract to help a small manufacturing company understand why they are continually running short on cash. How might a review of the company's operating cycle be helpful in this exercise

9. Describe the uses and sources of cash.

10. Describe the characteristics of the operating cycle and the cash cycle.

11. Explain how the cash budget is used in short-term financial planning.

You have been asked to sit on a panel to discuss the lending practices of the payday loan industry. The panel has been asked to make a recommendation on whether these companies should be allowed to continue to operate or closed down. Those favoring closure cite the high rates of interest charged by these establishments. What do you think about the closure proposal?As a follow-up - consider the following:

It does seem unfair, even predatory, for the payday lenders to charge the rates of interest they do. It is true that their customers are often in very difficult situations and charging such high rates of interest to these people seems kind of like piling on and kicking people when they're down. The borrowers' perspective, and the perspective of those that advocate for the borrowers, is clear and understandable.

Although nobody seems to want to speak up for the lenders, their perspective is also equally clear and compelling. The fact is that their customers come to them because nobody else will lend to them. Nobody is willing to lend to these customers because they have miserable credit history and lending to them is extremely high risk. The only way to offset the incredibly high risk is to charge very high rates of interest.

To put this in perspective, would you walk into a payday loan establishment and lend $1000 to the first customer you see at 4% APR? If not, why not? Why would you expect a payday loan establishment to do something you're unwilling to do?

Note: I know I'm oversimplifying this and I understand that some of the payday loan outfits are crooks. I hope you see the point I'm trying to make.

12. Identify the three elements which make up the terms of sale.

Answer each question in 200 or more words.

Use citations and references.

Use APA guidelines please.