Instruction
NEED AN ESSAY....
Instructions: Assignment #1
Please refer to the introduction of Credit Rating and Financial Analysis Services on page 417 of your textbook. This information discusses the analysis of financial statements to provide reports that assist in assigning ratings for investments, such as bonds. Potential investors use these sources, along with a companys annual report, to determine investment decisions, therefore illustrating the importance of providing legitimate information. Please research a potential investor that has relied on inaccurate financial report information (or the resulting investment rating) that misled their investment decision. Make sure to provide detailed examples of how this decision could have been avoided by accurate financial reporting. Please share your research by illustrating the information in a 1 to 2-page, double-spaced document. Please provide citations as needed and include the sources for your research. Make sure to check for proper spelling and grammar prior to submission.
PART #2
PARAGRAPH ANSWER THE FOLLOWING:
As a business owner decides what type of financing to consider for their business, they must choose between debt financing (liabilities) and equity financing (owner's equity). With debt financing, a business is obligated to pay back the debt within a specific time frame with interest payment being a part of a contractual agreement. With equity financing, a business is not obligated to pay back the debt nor contractual obligations for paying dividends to their stockholders. With this being said, why wouldn't businesses prefer all financing to be equity financing versus debt financing? Are their drawbacks or incentives for one form of financing versus the other? Please validate your statements with supporting details.
PARAGRAPH ANSWER THE FOLLOWING:
Please read over the Business in Practice found on page 472 (Chapter 12). This short case study discusses the relationship involved with CVP. Briefly discuss your response to this case study and the concept involved to generate business in this manner. Do you know of other businesses that utilize this practice? How is this method beneficial to these businesses? Can you envision an expansion of this concept that could offer even greater benefit to business?
THE BOOK USED IS ACCOUNTING: WHAT THE NUMBERS MEAN 9TH EDITION I will include the info