...Debt vs. Equity Financing ACC 400 May 1st, 2012 Debt vs. Equity financing Many businesses find it necessary to expand. The question is how? Business owners look to the advantages of debt compared to equity. These two categories are the main sources of capital for businesses, which there is nothing more important than raising capital. Finding the right balance between debt and equity financing means weighing the benefits of each and involves accounting, investing, banking and sometimes even some legal assistance. Debt Financing Debt financing is defined as taking on a form of loan/loans that must be repaid over time, often times with interest. In order to use debt financing as an option, businesses can choose to borrow from government agencies or banks for short term; which is usually under a year or long term loan over 12 months. Debt financing has it’s benefits to business owners during tax season because the interest paid on loans is deductible. However, the disadvantage is obviously the risk involved with taking out a loan in general, because there is a burden of that debt and failure to repay that debt with irregular cash flow available. For example: Being a student in college I had to choose if I wanted to invest in my future and how financially I was going to pay my way through school. So I chose to take out loans and pay the interest and loan off while in school, I not only took a risk but I did it to expand and grow. Second example...
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...Fiscal Policy Paper Deficit can affect multitudes while a surplus creates positive results for those on the receiving end. A debt requires the liability to be paid or the liability may be repossessed or rendered bad credit to the individual. While Americans face issues with debt, surplus, and even deficit it is important to know that the United States deals with it first hand as well. Several areas the three topics affect include tax payers, unemployed, Social Security, Medicare, imports, exports, and the GDP. A synopsis of Team B’s discussion of the topics follows. Tax Payers Taxes are imposed on the United States by three categories; federal, state, and local government. Tax payers are taxed on their income, payroll, property, sales, imports, estates and gifts, as well as various fees. Tax payers are required to file tax returns whether it be for a business, corporation, or individual. Tax payers are affected by the U.S. deficit when there is a shortfall in revenue which is the result from the National Debt increasing. Additionally when there is a surplus tax payers are affected as well. Future Social Security and Medicare Users Social Security Administration figures that by the year 2040 the SS trust fund will be used up causing utilizing one of three options: borrowing, increasing revenue, or lowering benefits. The Medicare program is estimated to be much closer to crisis than the SS trust fund. In contrast to current Medicare and Social Security benefits budget...
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...Education Reform Jatin Patel December 10th, 2012 Statement of Issue How can the federal government decrease student loan debt in the country and still provide an education to those whom want to seek it? Every summer millions of college students throughout the nation depend on Federal Financial Aid to help pay for school. In the midst of the election season the Republican candidate, Mitt Romney, voiced how he wants to end government funding. Currently, the nation provides direct government funding and Governor Romney is in favor of giving private banks and institutions the responsibility to provide student loans to those in need. Many people are deeply concerned with the issue at hand. Private Institutions vs. Government Disbursement The educational reform is a debate that is widely argued between the two presidential candidates. The current system of how student loans are disbursed in the United States is not perfect, but it is working. Both candidates are in favor of receiving higher education, but differ on how individuals should pay to learn. Throughout the presidential debates both candidates took a firm stand as to where they both stand on the topic of student loans and government funding. College tuition costs are increasing at a rapidly linear rate each and every year. The problem is college students today are taking on the burden of steep student loans and left without a job upon graduation. The average annual cost to attend a four-year institution is roughly...
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...— Do They Deliver Value to Students and Society? by Robert Lytle, Partner and Co-Head, Education Center of Excellence Recently, U.S. private sector post-secondary education providers have come under intense legislative, regulatory, political, and press scrutiny across a myriad of issues. Likewise, discussions in Washington, D.C. have focused on assuring quality outcomes for students by enhancing existing regulations and proposing new ones. Underlying this scrutiny is an apparent belief that private sector educational providers are likely to suppress investments in educational quality and student outcomes in favor of profits. As a result, there has been much subjective discussion around the private sector’s role in post-secondary education with a limited level of objective facts. In an effort to shed more objective light on the role of private sector education providers, The Parthenon Group examined the following question: Do private sector post-secondary schools deliver value to students and society? Over the past several months, through an analysis of U.S. Department of Education longitudinal studies, industry data, and primary research, Parthenon conducted a rigorous examination of the private sector’s ability to provide meaningful post-secondary outcomes. E d u c at i o n c E n t E r o F E x c E l l E n c E w w w. p a r t h e n o n . c o m Parthenon Perspectives Private Sector Post-Secondary Schools — Do They Deliver Value to Students and Society? www.parthenon...
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...Online Vs. Traditional Education | James JohnsonCOM/155December 15, 2013 | Online Vs. Traditional Education Thesis statement Is online education equal to traditional education? Research shows that online learning is equal or better than traditional classroom experience. There has been a strong debate about online education and traditional on campus education, this essay will point out the facts about both online and traditional, on campus, teaching’s. Traditional Education A. The traditional education system relies on a style of learning intended to allow students to gain individual meaning and learning to the subject matter. Traditional education focuses on individual student’s needs and self-expression. Traditional education has a more hands-on approach that utilizes both the teacher’s intellectual values and skills as well as the students. B. Traditional schools have a more one-on-one intercourse between professor and student. 1. In a traditional school you can interact with students easier than if you were online. Living on campus lets you have a space to call your own. Online Education A. Students are given the opportunity to choose from various schools, programs and courses which are not available in the area where they live in. 1. Offers flexibility to students. Allows a more student-centered teaching approach. B. Getting an online education may help in ensuring that each lesson or material is completely understood before moving...
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...results of your exam. Grades for essay questions, and comments from your instructor, are in the "Details" section below. | Date Taken: | 1/29/2012 | Time Spent: | 2 h , 45 min , 16 secs | Points Received: | 129 / 150 (86%) | | Question Type: | # Of Questions: | # Correct: | Essay | 7 | N/A | | | Grade Details | 1. | Question : | (TCO D) A classmate is considering dropping his accounting class because he cannot understand the rules of debits and credits. Explain the rules of debits and credits in a way that will help him understand them. Cite examples for each of the major sections of the balance sheet (assets, liabilities and stockholders' equity) and the income statement (revenues and expenses). | | | Student Answer: | | Debits and Credits are pretty simple. Everyone knows the famous saying " what goes up most come down." It's the same theory in that if you have a debit or credit, you will have the a debit or credit on the other end. Think as debit as when you use your debit card, you have money withdrawing from your personal checking; therefore you have money leaving the account. Credit is basically how the lenders give you money to use; therefore you have money coming in to your account. | | Instructor Explanation: | Accounting is based on the double-entry system. This system records the dual effect of each transaction in the appropriate accounts, thus keeping the accounting equation in balance. Each transaction is analyzed and recorded...
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...Lindsay Hartman Lynn McClelland ENG 101 29 February 2016 Online vs. Traditional Education During the final year of high school, the pressure of going to college is at its peak. Drilling into our heads that, college is the best route to go after high school if we want to have a “bright” future. No doubt majority of students go to college directly after, but some end up waiting to go later on. Fortunately, there are other options available today for those who had to wait to go. Online schooling, the ability to get a higher education online, without the traditional classroom setting. Now the burning question, just how much better is online learning anyway? There are many factors in determining whether the online route or the traditional way is better. Things like the cost of education, the academic performance of students, or the environment you wish to learn. Let’s dig a bit deeper to find out just what the facts will prove! The thing today that most people think about before making their decision about which way to go, is the environment that would best suite their current life situations. For instance, “students who freely choose online classes may have different characteristics, like they may be older, or have children, or are employed full time” (Dr. Stack 2015 Learning outcomes in an online vs traditional course pa.9). It is this flexibility that makes it possible for people with these characteristics to get a higher education. Just think about it, if you...
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...different. Without knowing these differences a person could lose many things from money to possessions. Chapter 7 bankruptcy can wipe out most of ones debts, but certainly not all of them. Certain kinds of debt are not covered by the terms of Chapter 7. Some examples of debts that must be paid after filing for bankruptcy would include child support, alimony, income taxes and penalties, student loans, and court ordered damages due to unfair and unrighteous acts. Bankruptcy courts handle your financial problems until the case ends. A court assumes control of all ones debts that are owed and all property that is not exempted. A trustee is appointed to be in charge of your debt. The trustee collects property that can be taken and sells it to repay some creditors. That property can be surrendered to the trustee, which can agree to pay the market value or one may choose to trade exempt property with nonexempt property. A small number of people actually lose property when filing bankruptcy. If a person changes their mind about filing for bankruptcy, they may ask the court to dismiss the case. At the end of the process, the court would discharge most of the debts and one is unable to file for another Chapter 7 bankruptcy for at least another six years. On the other hand, Chapter 13 bankruptcy is mostly used to make up any type of debt payments and pay things off. In some cases it can be used to stop a foreclosure on a house. Chapter 13 bankruptcy cases usually last up to 5 years...
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...railway transportation company that covers the southern part of the US, Mexico, and Panama. It serves both commercial and industrial sectors (Kansas City Southern, 2014). The following report will cover the company’s growth potential, the competitive ratio analysis, the competitive edge it has over the other companies and the key aspects of the industry and how KCS fits in. The summary of the overall position of the company helps in guiding the purchasing decision. Ratio Analysis Looking at key ratios between Kansas City Southern and the rail industry, you will notice some positive and negatives points of interest between the two. The first key figure you will notice is the annual sales is significantly lower than the industry at 2.58B vs. an industry average of 10.5B. This is expected though because KCS is one of the smallest companies in the industry. Looking at profit margins, KCS does not perform up to the industry averages with gross profit margin, net profit margin, as well as pretax profit margin. The reason for this is also most likely due to their smaller size, or inefficient operations. The gross profit and pretax margin both have higher gaps, but the net profit margin is only a 1.65% variance at 19.65%. The net profit margin is the most important one of the three, and seeing as KCS is right with the industry, this shows they are strong. When comparing Kansas City Southern’s investment return and...
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...Online Education vs. Traditional Education Online Education vs. Traditional Education There are different ways to access higher education, either through online education or traditional education. For centuries, online education could not compare to traditional education. Today, online education competes with traditional education in many ways. Though online education has become very popular, how does one know which is best for him or her? Identifying the pros and cons through flexibility, communication, interaction, skills development, and affordability will help the student decide the best option. Although online education seems to be taking over the traditional means of education, both are great options in different ways. The bottom line is that the world is becoming technologically smart. For one juggling home, school, and a job, it can be difficult commuting to class every day. Online education eliminates the need to attend class. Online courses allow the student to access coursework from an Internet site. Motivated, responsible, independent learners can work at their own pace, whenever is suitable for them. This allows the flexibility that a traditional classroom setting does not provide. However, one who struggles to be self-motivated may fall quickly behind. In a traditional classroom setting the student has to attend class on campus. Traditional education is for a learner who needs more lecturing to understand and also needs to be able to ask questions as he...
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...should earn a share of that money? Central Idea: One of the most controversial and prominent topics in sports today is whether or not schools should pay their student-athletes to play their sports. I am going to argue as to why they should not be paid to play. Preview of Main Points: I will talk about five key reasons as to why collegiate athletes do not deserve to be paid to play. These are because of already established scholarships, would lead to decreased competition, the fact that there isn’t enough money for schools to give out already, a removal of innocence would occur, and recruiting would suffer among schools. Transition: First, I will explain why collegiate athletes already receive enough money from scholarships and free tuition. Body I. Tuition and the “Student” A. Already receiving thousands of dollars from athletic scholarships 1. According to a Parade Magazine article, Division I student athletes can receive between $20,000 and $50,000 per year. 2. A study done by a Big 10 assistant coach calculated that if the dollar value of the college’s tuition, room, and board is divided by the NCAA-mandated time limits for football practice, an in-state student athlete is getting $56.25 per hour. B. Already receiving many benefits not given to “traditional students” 1. Free food 2. Free housing 3. Access to state of the art training...
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...financial planning process. Summarize what influences personal financial planning. Identify parts of a financial plan. Materials READING: Read Ch. 1 of Personal finance - Personal Financial Planning in Action: Developing a Personal Financial Plan. SUPPLEMENT: Appendix A: How to Install Quick Time Movie Player SUPPLEMENT: Appendix B: Personal Financial Planning Worksheet WEB LINK: Decision to Own a Home vs. Rent Video SUPPLEMENT: Video Transcript - Decision to Own a Home vs. Rent Assessment Please see instructor's syllabus for details on assignments. Participation/Discussion Questions WEEK 2 - TOPIC 1: MONEY MANAGEMENT Objectives Describe how to organize and prepare personal financial statements. Identify cash management products and services. Complete a personal cash flow statement. Materials READING: Read Ch. 2 of Personal finance - Money Management Strategy and Skills: Putting Your Financial House in Order. READING: Read Ch. 4 of Personal finance - Managing Your Cash and Savings: Cash Management Strategies. WEB LINK: Toolwire® Student Resources Page TOOLWIRE: Toolwire® Learnscape: Understanding Effective Money Management SUPPLEMENT: Mary's Balance Sheet WEB LINK: Home...
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...Finance 3101: Financial Management Syllabus (Spring 2013) Section: 101 Time/Room: TR 12:30 P.M. – 1:50 P.M. / 208 Ambler Learning Ctr. Course Coordinator: Dr. Howard Keen (“DRK”) Course Instructor: James Dooley Office Hours: By Appointment E-mail Address: jsdooley@verizon.net Office Telephone: 215-498-0157 Prerequisites |Economics 1101 (C051) and 1102 (C052); Accounting 2102 (0002) or 2521. Statistics 2101 (C021) or 2103. Any exception to the foregoing prerequisites can | |only be approved by the Department Chair. | | | | | | | |Course Description | | | | | This course provides a survey of the financial problems associated with the life cycle of a business firm. Topics include: financial analysis and planning, capital budgeting, cost of capital, and the sources and uses of business funds. While the emphasis is on decision making within a corporate environment, the tools taught in this course are just as relevant to other forms of business organization and to personal financial management. Course Objectives ...
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...Improving Relationships Forgiving Our Debtors September 30, 2012 Sciotoville Christian Church FORGIVING OUR DEBTORS Matthew 18:23-35 Introduction A. Have you ever prayed? “Forgive us our debts as we forgiver our debtors?” 1. Who are our debtors? a. Father who robbed us of happiness b. Repairman who cheated and lied to us c. Coach who didn’t play us d. Boss who overlooked us e. Church member who started a false rumor about us f. Relative who abused us g. Friend who cheated us h. Spouse who has been unfaithful to us B. These people owe us. 1. Apology 2. Money 3. Second chance 4. Explanation 5. Thank you 6. Childhood 7. Marriage * Lynn Anderson, preacher in Texas, tells how ugly things became when his daughter inlaw was having a nasty and popular affair in town. He said that he would carry a knife with him in hoping to see the man who tried to steal her from his son. C. What are we going to say to these people? 1. Important question? Do we really mean it when we say… “Forgive us our debts, as we forgive our debtors” Matthew 18:21-22 1. Do you think Peter had someone in mind? 2. Was he trying to be self-righteous? (Forgive 3 times after that you were justified) I) THE DIFFICULTY OF FORGIVENESS 1. What is forgiveness? a. Giving up my right to retaliate and agreeing to live with the consequences of others wrongs. b. Why is this so hard...
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...college students and recent graduates who find that getting a job that they are not vastly overqualified for is almost just as difficult as graduating. For those few students who gratefully find themselves at the bottom of the corporate ladder, the next difficult task is appropriately managing their new $45k salary. Financial literacy is defined as “the ability to make informed judgments and to take effective actions regarding current and future use and management of money” (LaBorde, Mottner, and Whalley 2014). Financial literacy and planning have long been considered issues in the US, but more now than ever, in the wake of a recession, they are of critical importance to those entering the work force. My research has led me to make three primary claims: (1) the US is mostly financially illiterate, (2) financial literacy and financial planning are positively correlated, and (3) good financial habits must be developed early. Financial Literacy All of the data supports the claim that a large portion of the US is financially illiterate; also, young adults and college students have even lower levels of financially literacy than the general public. Research indicates that college students today have an exceptionally low level of financial literacy. One financial literacy survey found that only 53 percent of students answered questions on simple, objective financial knowledge correctly. In a national survey of financial literacy, college students only achieved ...
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