Week 5 – Discussion Forum 2
Required Resources
Text
Block, S. B., Hirt, G. A., & Danielson, B. R. (2019). Foundations of financial management (17th ed.). Retrieved from https://www.vitalsource.com/
- Chapter 11: Cost of Capital
- Chapter 17: Common and Preferred Stock Financing
Web Page
John Deere. (n.d.). Investor relations (Links to an external site.). Retrieved from https://investor.deere.com
- This website provides financial information about Deere & Company and will assist you in your Cost of Capital and The Relationship of Debt to Equity discussion forums this week.
Accessibility Statement(Links to an external site.)
Privacy Policy (Links to an external site.)
Recommended Resources
Article
Cremades, A. (2018, August 19). Debt vs. equity financing: Pros and cons for entrepreneurs (Links to an external site.). Forbes. Retrieved from https://www.forbes.com/sites/alejandrocremades/2018/08/19/debt-vs-equity-financinpros-and-cons-for-entrepreneurs/#5bc8efb76900
- This article provides information about debt versus equity and may assist you in The Relationship of Debt to Equity discussion forum this week.
Accessibility Statement does not exist.
Privacy Policy(Links to an external site.)
Multimedia
Edspira. (2014, February 11). Poison pill (mergers and acquisitions) (Links to an external site.) [Video file]. Retrieved from https://youtu.be/HYg1wGNqlo8
- This video provides details about the cost of capital and financing considerations and may assist you in your Week 5 Homework Problems assignment and Week 5 Quiz this week. This video has closed captioning and a transcript.
Accessibility Statement(Links to an external site.)
Privacy Policy (Links to an external site.)
Ross, K. [Kathie Ross]. (2015, February 2). 523 WACC calculate (Links to an external site.) [Video file]. Retrieved from https://youtu.be/-x5GhTQWBlc
- This video provides details about the cost of capital and financing considerations and may assist you in The Relationship of Debt to Equity discussion forum this week. This video has closed captioning and a transcript.
Accessibility Statement(Links to an external site.)
Privacy Policy (Links to an external site.)
Ross, K. [Kathie Ross]. (2015, February 2). 523 WACC cost of capital preferred stock (Links to an external site.) [Video file]. Retrieved from https://youtu.be/gPVj0s8hQP0
- This video provides details about the cost of capital and financing considerations and may assist you in your Cost of Capital discussion forum this week. This video has closed captioning and a transcript.
Accessibility Statement(Links to an external site.)
Privacy Policy (Links to an external site.)
Ross, K. [Kathie Ross]. (2015, February 2). 523 WACC cost of debt (Links to an external site.) [Video file]. Retrieved from https://youtu.be/gS9CTPLPxGg
- This video provides details about the cost of capital and financing considerations and may assist you in your Cost of Capital discussion forum this week. This video has closed captioning and a transcript.
Accessibility Statement(Links to an external site.)
Privacy Policy (Links to an external site.)
INSTRUCTION
Prior to beginning work on this discussion, review the liability section in the quarterly balance sheet in the “News Release and Financials” document for Deere & Company you downloaded in Week 1.
Compare the liability section of the balance sheet to the equity section, and discuss whether the relationship of debt to equity is appropriate for the company. Explain whether the debt-to-equity relationship has changed from the previous year, and assess why financial managers should track this relationship over time.
Week 5 – Discussion Forum 1
Required Resources
Text
Block, S. B., Hirt, G. A., & Danielson, B. R. (2019). Foundations of financial management (17th ed.). Retrieved from https://www.vitalsource.com/
- Chapter 11: Cost of Capital
- Chapter 17: Common and Preferred Stock Financing
Web Page
John Deere. (n.d.). Investor relations (Links to an external site.). Retrieved from https://investor.deere.com
- This website provides financial information about Deere & Company and will assist you in your Cost of Capital and The Relationship of Debt to Equity discussion forums this week.
Accessibility Statement(Links to an external site.)
Privacy Policy (Links to an external site.)
Recommended Resources
Article
Cremades, A. (2018, August 19). Debt vs. equity financing: Pros and cons for entrepreneurs (Links to an external site.). Forbes. Retrieved from https://www.forbes.com/sites/alejandrocremades/2018/08/19/debt-vs-equity-financinpros-and-cons-for-entrepreneurs/#5bc8efb76900
- This article provides information about debt versus equity and may assist you in The Relationship of Debt to Equity discussion forum this week.
Accessibility Statement does not exist.
Privacy Policy(Links to an external site.)
Multimedia
Edspira. (2014, February 11). Poison pill (mergers and acquisitions) (Links to an external site.) [Video file]. Retrieved from https://youtu.be/HYg1wGNqlo8
- This video provides details about the cost of capital and financing considerations and may assist you in your Week 5 Homework Problems assignment and Week 5 Quiz this week. This video has closed captioning and a transcript.
Accessibility Statement(Links to an external site.)
Privacy Policy (Links to an external site.)
Ross, K. [Kathie Ross]. (2015, February 2). 523 WACC calculate (Links to an external site.) [Video file]. Retrieved from https://youtu.be/-x5GhTQWBlc
- This video provides details about the cost of capital and financing considerations and may assist you in The Relationship of Debt to Equity discussion forum this week. This video has closed captioning and a transcript.
Accessibility Statement(Links to an external site.)
Privacy Policy (Links to an external site.)
Ross, K. [Kathie Ross]. (2015, February 2). 523 WACC cost of capital preferred stock (Links to an external site.) [Video file]. Retrieved from https://youtu.be/gPVj0s8hQP0
- This video provides details about the cost of capital and financing considerations and may assist you in your Cost of Capital discussion forum this week. This video has closed captioning and a transcript.
Accessibility Statement(Links to an external site.)
Privacy Policy (Links to an external site.)
Ross, K. [Kathie Ross]. (2015, February 2). 523 WACC cost of debt (Links to an external site.) [Video file]. Retrieved from https://youtu.be/gS9CTPLPxGg
- This video provides details about the cost of capital and financing considerations and may assist you in your Cost of Capital discussion forum this week. This video has closed captioning and a transcript.
Accessibility Statement(Links to an external site.)
Privacy Policy (Links to an external site.)
INSTRUCTION
Prior to beginning work on this discussion, read Chapter 11: Cost of Capital in your textbook.
When a firm has an opportunity to earn a rate of return that is greater than the cost of capital, many financial managers assume they should always make the investment. For this discussion, explain why an investment decision like this isn’t always as straightforward as it might seem, and discuss the factors a financial manager should consider before making any investment decisions.