Essay On Long Term Debt

This paper was conducted as a Discussion Board Post assigned by Professor J. Reinke of: Liberty University, Graduate School of Business, Lynchburg, Virginia 24515.

It also reflect that there is cost of financing with debt reflecting the bankruptcy costs as well as the financial distress in the form of costs of debt. The marginal benefit is increased in decline of debt with the increase in debt leading to the increase in marginal cost. It further optimises the overall value focusing on the trade-off while selecting the amount of debt and equity to be used for financing. This theory can provide the explanation for differences in ratios for debt to equity between industries without reflecting any explanation on the differences within similar industry (Lee, et al., 2009).

College Debt, two of the most scariest words for high schoolers planning to go to college. In fact a survey was taken by high schoolers and studies show "that 80 percent of the survey's participants said that obtaining a college degree is important to having a career. At the same time, 67 percent of the respondents said they are worried they won’t be able to afford college and, on the whole, they’re opposed to acquiring student debt." (New) Now even though there's a chance to incur significant debt it'll be worth it in the long run. It's an investment for the future, you can get a job faster, and there's many positive benefits when it comes to having a college education.

The National Debt started a long time ago when the U.S started the revolutionary war. It started in 1835 and went from there and our debt is rising till today. Our debt is predicted to be about 300,000,000 trillion dollars. The debt from September 2 was about 17 trillion it is rising very fast and when it gets too high the U.S will start losing products like Oil that we need for cars and other fuel working products. Our U.S. is one of the most highest in debt out of the whole world China is about 6 trillion, just an estimation, Africa is about 1 trillion, and Russia area is 8 trillion. $56,006 for every person living in the US. $145,950 for every household in the US. 103% of the U.S. gross domestic product. 540% of annual federal revenues.

In the two years presented in the case study (2009-2010), Yum Brands, Inc. saw a significant decline in its operating cash flow/current maturities of long-term debt and current notes payable. This indicates that they are less able to meet their current debt obligation. However, when looking at operating cash flow/total debt, there is an increase of 7.3% showing that Yum Brands, Inc. is more able to cover its debt with operating cash. A review of the operating cash flow per share shows an increase of $1.14 showing an improvement in its ability to make capital expense decisions and pay dividends to its shareholders. Finally, Yum Brands, Inc. a .9 increase in operating cash flow/cash

I think that my idea is much better because it will free up funds that could be reallocated where it is needed such as healthcare expenses. These issues really need to be addressed and reevaluated and something needs to be done immediately. It will never be practiced because the politicians will not reduce their income and we will continue seeing cutbacks from our veterans, elderly, and disabled populations.

A large burden most student take on after high-school is having to pay for post-secondary education. Apart from the fact that tuition has become a big impact in our society, student`s families face many challenges within their lives, such as having household debts that must be maintained with an unsteady income. These families have a hard time facing more long-term debts because of the increments in Ontario’s tuition rates. In today`s society most people make paying off their government funded money a priority. Student loan has become a long-term debt amongst many young adult’s lives, they finance their money to make payments towards their student loans. A student with a bachelor degree will have a difficult time making payments for their student loans but there are students that extend their education on to getting their masters or PhD, increase their debt. Long-term debt of one’s tuition alone could take years to pay off.

Even if he is struggling with major debt, it shouldn’t be a problem for you. As long as you can be next to him, encourage him and help him, he will be able to make a clear future for you. You always need to have a crystal clear idea about his situation by talking to him regarding this matter, so you can adjust your mind for a new life with a new experience.

Many businesses use debt financing to achieve their financial goals. Debt financing is raising operating capital by borrowing. Scott Equipment Organization is investigating various combinations of short-term and long-term debt financing in financing their assets. Short-term debt financing has a maturity of one year or less; whereas, long-term debt financing has a maturity of more than one year. Short-term debt is usually used to increase the amount of available working capital that can assist the company with its day-to-day operations, such as purchasing a required piece of equipment or to pay suppliers.

The Case Study is provided by the Harvard Business School and is considered necessary reading prior to the understanding the responses contained herein. This paper is

The Debt Ratio, projects the relationship between the total assets and total debts of the company. This ratio is used to measure the financial risk of the company. In order to measure the financial risk, we need to look at the amount of debt that the company has incurred due to the financing of operations. This is done by comparing the total debt to the total assets of the company, from there we derive a debt percentage. The total debt amount includes, current and non-current liabilities. Whilst, the total assets amount includes, current and non-current assets. The overall ratio is expressed as a percentage. This percentage indicates how much of debt is incurred by the company, when financing its operations. If the overall percentage is high, it implies that the company is at a financial risk as there is a relatively high proportion of debt.As potential investors would not want to in a company which has a high percentage of debts.Whilst a low overall percentage, the company is at a low financial risk and are handling their debts well. The

Small business debt can cause lots of problems. It takes away the money and time you need to successfully run your business. When it becomes a burden to your company, it's time to think about small business debt consolidation.

When it comes to short term loans there is a lot of misinformation out there. Before deciding to get one of these loans there are things that you should know. These loans are also sometimes referred to as 'pay day loans'. These are loans that are intended for short term use, when one finds themselves in a bind and needing some fast cash. These loans are designed to be super easy to get, and are perfect for those who don't have good credit. Even those who have bad credit can be approved.

This document is authorized for use only by Albertina Dias at ISG Business School until September 2013. Copying

Mohsina Akter Roll-11124 Section-B, Batch-11 Faculty of Business Studies Department of Accounting& Information Systems University of Dhaka