Respond to both statements with at least 150 words
1. For this discussion board, describe how the organization you are researching leverages equity financing at the international level and the impact this has on organizational decision making.
2. My last article review referenced this topic of international leveraging and spoke using debt to leverage financing. As we all know, on a personal level, everyone hates to carry debt. Most of us do though and pay monthly on homes, vehicles, school loans, etc. Businesses on the other hand actually use debt to there advantage. By selling debt, various countries, including the US use debt to make money. By selling bonds and debt to other countries, putting it simply, the home country can collect interest and other fees on the debt to make more money. There is of course a limit to the amount of debt is beneficial to each business. Walmart looks at the marginal cost of having debt to the benefit of having debt. This helps Walmart to determine whether incurring more debt would beneficial or not (van Binsbergen et al, 2011). Being that there are thousands of stores worldwide factors such as demand, interest, and exchange rates play a role in how much debt the corporation can carry versus equity. There are also tax benefits to having debt unlike equity where taxes have to be paid on money earned.