Why the two videos seem to have different conclusions

Assignment Help Microeconomics
Reference no: EM132007795

Question: Overall, debt financing is far more common and larger than equity financing for specific projects and assets.

This discussion will address the following Module Outcomes:

• MO1: Overall, debt financing is far more common and larger than equity financing for specific projects and assets.

View the two videos below. The first speaks favorably towards equity financing, while the second gives a more balanced review.

• Council for Economic Education. (2012, July 13). Entrepreneurship - Debt and Equity Financing. (Links to an external site.)Links to an external site.[Video File 2:20 min]

• Accion in the U.S. (2015, August 11). Debt vs. Equity Financing. (Links to an external site.)Links to an external site. [Video File 3:23 min]

After viewing these two videos, please apply what you have learned from the videos and from your textbook to respond following:

1. Explain why the two videos seem to have different conclusions.

2. Overall, debt financing is far more common and larger than equity financing for specific projects and assets. Why do you think that is?

3. What is an appropriate rate of equity financing vs. debt financing for an individual's new home or new car? Why?

Reference no: EM132007795

Questions Cloud

Compute the required rate of return : A firm pays $12.80 dividend at the end of year one, has stock price of $98, and a constant growth rate (g) of 4 percent.Compute the required rate of return (Ke)
Contrast the economic ideas of mercantilists and physiocrats : Compare and contrast the economic ideas of Mercantilists and Physiocrats. The essay should not exceed 1500 words and must be formatted.
What is the price of the common stock : If the required rate of return by common stockholders (Ke) is 14 percent, what is the price of the common stock?
Compute the current price of the bonds : Compute the current price of the bonds if the present yield to maturity is.
Why the two videos seem to have different conclusions : Explain why the two videos seem to have different conclusions. Overall, debt financing is far more common and larger than equity financing for specific projects
What is the present value of the following : What is the present value of the following? Use Appendix B as an approximate answer,
Payback is frequently used to analyze independent projects : Payback is frequently used to analyze independent projects because:
What is natural about the natural rate of unemployment : What is "natural" about the natural rate of unemployment. Why might the natural rate of unemployment differ across countries?
Does the study fill a gap in the existing literature : Describe the methods for collecting data for a qualitative study that is consistent with the research question and research methodology and model.

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd