Discuss the benefits and drawbacks of corporate debt


Discussion Post A:

If a company wishes to purchase new equipment, it must have capital. But, before making any purchase, the financial manager needs to decide if the benefits of the new equipment outweigh the present and future benefits of the capital. For this discussion, address the following:

o Summarize the concept of time value as it relates to money.
o Explain how managers estimate the future benefits of capital.
o Analyze how the time value of money impacts capital investment decisions.

Discussion Post B:

Corporate debt has been increasing dramatically in recent years. Most people view debt in a negative light. However, with a little balance, debt can be beneficial. For this discussion, address the following:

o Discuss the benefits and drawbacks of corporate debt.
o Explain how financial managers can assess the company's debt structure and determine how reasonable it is.
o Describe the factors one should consider when deciding if a company's debt should be increased or decreased.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Financial Management: Discuss the benefits and drawbacks of corporate debt
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