Case: Winfield Refuse Management‚ Inc.: Raising Debt vs. Equity I. Case situation: Decision Proof: 1. First part: "...‚ it was Sheene’s responsibility to lead the discussion on how to finance a major acquisition...reach a resolution this time." 2. Last part: "Board Discussion"‚"However‚ there was decidedly less agreement on the matter of financing..." 3. The article is about background and arguments about whether to raising debt or equity. II. Options: Funding the acquisition
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Problem Statement: Winfield Refuse’s acquisition of MPIS was a great opportunity to increase revenue and reduce costs through economies of scale. However‚ the expansion of the firm also means that Winfield Inc. needs to select a method of external financing to continue its operations effectively. The Winfield family and senior management held 79% of common stock in 2012. This means the company places tremendous importance in the ownership of company. The acquisition of MIPS should not change the
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financing decision? The following assessments were given during the last board meeting: • Andrea Winfield considered issuing bonds was not a good option for financing the acquisition. She was particularly concerned about the increasing long-term debt and annual cash layout of $ 6.25 million for 15 years. We believe that her concerns are justified‚ because the Company had already significant amount of debt that could result in higher risks and stock price fluctuation. However‚ Andrea neglected the advantage
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TABLE OF CONTENTS I.Introduction1 II.Key Issues2 III.Recommendations6 IV.References7 I.Introduction Hospital Corporation of America (HCA) is propriety‚ hospital management company founded in Nashville‚ Tennessee in 1968 with only one‚ 150-bed hospital and then grew to become the nation’s largest hospital management company. As of 1981‚ HCA owned or managed 349 hospitals in the United States and overseas. During the 1970s‚ HCA achieved its growth by acquisition of existing hospitals and construction
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. Debt and Equity Financing Debt Versus Equity Financing ACC400/University of Phoenix June 13‚ 2011 Debt Versus Equity Financing In the accounting industry financing is an important concept. Many companies would not be operable without acquiring some for of financing options. Although there are many types of financing‚ the two that will be discussed in this paper are debt financing and equity financing. Also this paper will give two examples of each type of financing and discuss which
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Debt Versus Equity Financing ACC/400 May 14‚ 2012 Debt versus Equity Financing Debt versus equity financing is a critical element in the process of managing a business and also the most challenging decision facing managers who require capital to fund their business operations (Schroeder‚ Clark‚ & Cathey‚ 2005). Debt and equity are the two main sources of capital available to businesses‚ and each offers both advantages and disadvantages. This paper will compare and contrast lease
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Debt versus Equity Financing Paper ACC/400 Debt versus Equity Financing Equity along with debt financing‚ are types of financing. The financial strength should be every organization’s main concern when looking for capital. The more capital the organization has invested in its business the easier it is to obtain financing. An organization should increase stockholder capital for additional capital‚ if it has a high portion of debt to equity‚ so that it
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Debt VS Equity Financing ACC/400 September 2013 Debt VS Equity Financing Most businesses are use financing for one reason or another. Whether it be startup‚ day to day operations‚ or financial stability financing is a fundamental part of operations. This summary will address what debt and equity financing are and how they are beneficial in business and everyday life. The summary will also explain which method is most beneficial in business operations. By
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GENESIS OF THE REPORT This project is about the comparison of EQUITY AND DEBT MARKET. This project also helps to understand which market is best the equity or the debt market by correlating the debt and equity. EQUITY MARKET The market in which shares are issued and traded‚ either through exchanges or over-the-counter markets. Also known as the stock market‚ it is one of the most vital areas of a market economy because it gives companies access to capital and investors a slice of ownership
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Characteristics of Debt and Equity Instruments Team D: Steven Harrison‚ Jessica Jefferies‚ Arlene Rivera‚ Kairstin Roberts‚ FIN476 Mr. Seth Fargen January 29‚ 2007 Financial Instruments Financial Instruments are the lifeblood of any successful company; they are like rivers of living water that brings life and nourishment in order to grow into a strong company. Financial Instruments fall into two categories‚ debt and equity. Debt is a financial instrument that is used to finance an organization
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