he United States economy similar to other world economies is experiencing higher costs of borrowing after the Federal Reserve’s increase in the Federal Funds interest rate. This has inturn increase the cost of borrowing for consumers and businesses.
The objective of the rate increase is to curtail the rate of inflation and slow spending.
Required:
Research a recent event for a company of choice to raise capital.
1. Initial Public Offering IPO) by one company ( this is a private company going public and raising Capital through Equity financing).
2. Research a recent ( can be 3 years) Bond sale by a Company (This is raising Capital through debt financing)
Submit a 7 page double spaced 12 point paper analyzing the company’s experience using the two forms of raising capital.
Your first section should document the IPO and the second section should document the Sale of Bonds
Include the following subtopics:
Company Background
Industry Segment and Business Risks
Main Products Manufactured or Distributed
Financial Performance ( Analyze the company’s strength for the last three years using financial ratios used in this course.
Document how the company compares with others in the industry.
Personal conclusion to your research findings and their relation to course topics.