You will complete this discussion based on the impact of key Federal Reserve functions on the financial operations of a business, the responsibility of the corporate finance function related to planning and investing, and debt and equity financing options available for a business.
In order to provide your Capstone boss with insight into this subject matter, you will utilize Johnson & Johnson (J & J) as a focus company to discuss the finance aspects of this organization by responding to the following questions:
3. Differentiate between debt and equity financing
options available for J & J by addressing the
following:
a. Define two differences between debt and
equity (i.e. stock) financing.
b. Bonds: describe this type of debt and
indicate one advantage and one
disadvantage of raising funds through the
sale of this type of security.
c. Common Stock: describe this type of
stock and indicate one advantage and one
disadvantage of raising funds through the
sale of this type of security.
d. Preferred Stock: describe this type of
stock and indicate one advantage and one
disadvantage of raising funds through the
sale of this type of security.
