Rasing Capital and Risk Management Short Discussion 1:
â€¢ 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?
â€¢ 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?
â€¢ What is the difference between an IPO and an SEO? Which
would you choose to invest in and why?
Short Discussion 2:
â€¢ 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
â€¢ 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?
â€¢ Of the three types of loans available for corporations,
under what scenarios would each be appropriate? why
Short Discussion 3
â€¢ Name three relevant risks to businesses What methods can
be used to alleviate the threat of each risk?
â€¢ 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?
â€¢ How should derivatives be used in risk management? What
problems might occur with their use?