Business Financing And The Capital Structure

1292 Words Mar 5th, 2015 6 Pages
Business Financing and the Capital Structure
Throughout this paper I will attempt to give financial advise to a business that will have direct impact on operations and the ability to successfully compete in the marketplace. Some of the tasks involved in delivering sound advice to this business is the first task that consist of describing the advice that I would give to the client for raising business capital using both debt and equity options in today’s economy, while outlining the major advantages and disadvantages of each option. The second task involves the attempt to summarize the advice that I would give the client on selecting an investment banker to assist the business in raising this capital. The third and final task entails the explanation of the historical relationships between risk and return for common stocks versus corporate bonds. Also explaining the manner in which diversification helps risk reduction in a portfolio. In conclusion I will make an effort to summarize what I discussed inside the paper.
First thing I would do as a financial advisor in delivering sound advice to the client for raising business capital using both debt and equity options is ask various questions that will give a clear picture of where you want your business to be in the future. Questions I would ask would be what is your vision or mission as it pertains to the product or merchandise you want to produce, distribute, and sell or indicate what services you will provide. What are…
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