Short Discussion 1:
Q1. What process must a company take to raise capital? Are there different methods for different types of companies? What are the risks and benefits of each?
Q2. If taking a company public is such a good idea, why don't all companies choose to do so? What are the risks? What are the benefits?
Q3. What is the difference between an IPO and an SEO? Which would you choose to invest in and why?
Short Discussion 2:
Q1. Provide an example of a short-term financing strategy and a long-term financing strategy. In what financial scenario would each strategy be most applicable? Is one method preferable to the other? Explain your rationale.
Q2. Give two examples of credit policy affecting the cash conversion cycle. Is relying on credit as a form of capital management advisable? Why or why not?
Q3. Of the three types of loans available for corporations, under what scenarios would each be appropriate? why.
Short Discussion 3:
Q1. Name three relevant risks to businesses. What methods can be used to alleviate the threat of each risk?
Q2. What is your opinion of the Terrorism Risk Assurance Act (TRIA), passed in response to the September 11 attacks?
What might be another significant event that, if it took place, would forever alter the landscape of financial risk management? What lasting effects might it have on businesses?
Q3. How should derivatives be used in risk management? What problems might occur with their use?