ACC 400 Week 4

Individual Debt vs. Equity Financing

Debt Vs. Equity Financing Paper

Prepare a 500-700-word paper in which you compare and contrast lease verses purchase options. In your paper, discuss the following questions:

1) What is debt financing? Give at least two examples.

2) What is equity financing? Give at least two examples.

3) Which alternative capital structure is more advantageous? Why?

Properly cite your references. If you used an electronic source, include the URL. If you used a printed source please attach a copy of the data to your paper.

Team Interpreting Financial Statements Report

Interpreting Financial Statements Presentation: (This is a report and a presentation)

The CEO of your organization has asked your Learning Team to analyze the companies listed in Problem BYP13-4, located in Chapter 13 of the text, Financial Accounting: Tools for Business Decision Making. Based on your analysis, create a Microsoft PowerPoint presentation to your CEO that answers the following items listed below, also included in the report structure outlined in Section 4.2 of Chapter 4 from the text, Communication Skills: Handbook for Accounting 2nd ed., by Fleet, Summers, and Smith your responses.

Note the problem starts:

"Interpreting Financial Statements

1. The Coca-Cola Company and PepsiCo, Inc. provides refreshments to every corner of the world. Selected data from the 2004 consolidated financial statements for The Coca-Cola Company and for PepsiCo, Inc., is presented here (in millions). "

1) Provide your calculated ratios and the commentaries derived from the ratios.

2) What information outside the annual report may be useful to you as an investor? Why?

3) Which company is more profitable? Why?

4) Which companys stock would you purchase? Why?

Your presentation to the CEO should include 5-7 Microsoft PowerPoint slides with speaker notes evaluating the profitability of the organization.

Discussion Questions

What are some of the various lease options? When would you use one option over the others? What could be the financial impact of this decision?

Under which circumstances would you lease versus purchase? What are the criteria that you would use to make this decision? What is the financial impact of this decision?

What are the components of the capital structure? What are the differences of these components? How do you determine the optimal mix of the components of the capital structure?