Capital Markets Assignment
Read the following paper:
Optimal Debt Mix and Priority Structure: The Role of Bargaining Power* by Dirk Hackbarth, Christopher A. Hennessy, & Hayne E. Leland. April 25, 2002
http://www.haas.berkeley.edu/groups/finance/Mix7C.pdf
Enter the discussion by posting your answers to the following questions (1-2 page essay):
- Why is it optimal for small firms to avoid public debt markets?
- Why do firms shift from bank debt into a mixture of bond market and bank debt over their life-cycle?
Conduct additional research necessary to support your discussion statements. Cite all sources of information you use. All written assignments and responses should follow APA rules for attributing sources.
