External Financing Essay Assignment Example | Topics and Well Written Essays - 1250 words

External Financing Essay - Assignment Example Several factors such as weighted average cost of capital (WACC) and agency costs should be considered in choosing an external funding source. The weighted average cost of capital is the minimum rate that a company is supposed to earn from the existing asset base in order to satisfy the owners, creditors and other capital providers. Agency costs restrict the leverage of a firm. Taking financial risks leads to higher leverage. This also increases the agency cost of debt and leads to lower debt capacity. Leverage helps to reduce the loss in terms of firm value. Therefore debt becomes advantageous especially in firms that have few opportunities of growth or high percentage of assets in place (Trigeorgis, 1995).This report explores the advantages and disadvantages of some of the major external financing options that Acme can employ. Equity The company can raise funds through issuing shares. They can either be common or preferred shares. Owners of common stock are partial owners of the com pany. They have the right to share company profits or dividends and vote at the company’s general meetings. Dividends paid to shareholders vary depending on the profits that the company is making. They also have preemptive rights to maintain the ownership of the company when gives another stock offering. However, common stock shareholders are the last to receive dividends after all the preferred stock shareholders. Owners of preferred stock also own the company partially but do not have any voting rights. Preferred stock pays fixed dividends. Preferred stock shareholders are the first to receive dividends and incase the company goes bankrupt, they will be paid before the common stock shareholders. Stock shares are advantageous because they are a permanent source of funding for the company and share capital cannot be redeemed. The disadvantage of this external financing method is that the ownership of the company is shared with the shareholders and they might make decisions th at might negatively affect the progress of the company (Davidson, 2002). Hire purchase Acme can also get external funding through hire purchase. The organization can acquire assets without investing the full amount in buying them. This agreement allows the company to use an asset for a certain period of time before it can fully purchase them. The firm is able to acquire an asset quickly without paying the full price and after the specified period of time, the company can either return it or purchase it a reduced price. This method is advantageous since the company can pay for the equipment through manageable installments from funds generated by the equipment. The disadvantage is that the total amount of installments exceeds the original cost of the equipment (Giovanelli, 1998). Bonds The company can also get external funding through issuing of bonds. The company offers loans in the form of debt securities. This method does not require companies to give up partial ownership of the co mpany. Bonds have either fixed interest rates or floating rates. More leveraged companies obtain more funding through bonds relative to stocks. This external funding method has several advantages. Issuing bonds is a cheaper method than bank overdrafts or equities since the interest from the debt is tax-deductable while equity dividends are paid out of taxed company’s profits. This strategy also helps companies to monitor their financial stability.

On Spirituality and Feminist Liberation Essay Example | Topics and Well Written Essays - 2000 words

On Spirituality and Feminist Liberation - Essay Example Christianity is considered as one of the world’s oldest agents of transformation as a factor in progress and development of humanity. The reasons, evidences and principles involved in understanding the issue of spirituality and its patriarchal nature had been extensively documented and debated upon since time immemorial. Since the predominant structure from early Christian era is patriarchal in nature, this paper will try to explore and analyze the historical role of women in religion by looking into the belief systems, myths, ad archetypes from ancient civilizations to the advent of religious feminism. The analysis would be thorough in depth discussion and reasoning on its philosophical and psychological implication with emphasis on female metaphysical structure. The predominantly patriarchal structure of church, though not inclusive, significantly shaped the role of women in religion and spiritualty. During the early Christian era, it is evident that women’s lives and spiritualties are constantly challenged as they are continually restricted in all aspect of life, considered inferior in essence compared to men and have very little access to knowledge. Accordingly, women is shaped and affected by their conditioned role and to conform and be dependent to the patriarchal structure of society (Melanchthon 303)... In essence, there should be emphasis on the various kinds of religion in looking into the role of women in terms to spirituality and relationship with the divine. However, as suggested by Howell, religions basically presets common purpose such that the primary is to stabilize the immediate society from any possible conflict and destruction through implementation of best practices and the secondary purpose is to control women in such a way that they will continue to reproduce and satisfy the male biological and physiological demands for sex. Though some women are worshiped for their beauty and beyond their domesticated propose, men remained in charge as predetermined by the patriarchal society. According to Melanchthon, feminism is the major ideology that liberates women from several decades of oppression and injustice brought about by the patriarchal nature of society through transformation. Looking at several historical data, it can be noted that women really experiences oppression and injustice and the advent of spiritual feminism liberated them from such (308). Women as Spiritually and Religiously Oppressed For most women, spirituality and religious undertakings became their source of inspiration and from part of in their personal relationship with the divine they worship and to achieve spiritual holiness women strive to continually achieve it through religious works and deeds. However, until 1920’s or before the advent of feminist spirituality, women cannot express their affection and relationship with the divine and were constantly being the subject of injustices and oppression. Among the injustices and oppressions women experienced in the past include; undervalued essence and other oppressions brought about by the patriarchal system, unrecognized