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Select one of the chapter questions below to answer for this discussion. Respond
Select one of the chapter questions below to answer for this discussion. Respond to a different question by one other student. Remember, your initial post should be two paragraphs long (with citations/references), and include one source other than your text. Cite/Reference your sources. 8.1 Risk and inflation are the two primary factors that affect interest rates on debt securities. Explain the role of each factor. 8.2 Briefly describe the features of the following types of debt: (a) Term loan, (b) Bond, (c) Line of credit, and (d) Municipal bond. What are the pros/cons of each type of dept? 8.3 Define each term and briefly explain the following debt features: (a.) Loan agreement (b.) Restrictive covenant (c.)Trustee, (d) Call provision 8.5 Critique this statement: Using debt financing lowers the firm’s profits, so debt financing should be used only as a last resort. Do you agree or disagree? 8.6 Discuss some factors healthcare managers must consider when setting a business’s target capital structure. Why are these factors important? 8.7 How is a business’s cost of debt estimated? Is it the cost of equity? (explain this term before you answer).
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