Capital structure | Business & Finance homework help
There are several arguments that can be made in favor of a publically traded health care organization issuing stocks or bonds as part of its capital structure. For starters, issuing either type of security enables the organization to raise funds quickly and efficiently with minimal upfront costs. This could be used for various purposes such as investing in new technology, hiring additional staff, or expanding operations into new markets.
Additionally, it provides an opportunity to attract investment from outside sources which may not have been an option previously. This influx of capital would likely result in stronger financial performance over time due to improved access to resources and greater potential for growth. It also allows the organization’s shareholders/owners a chance to diversify their holdings by investing in different types of securities which could help protect them against volatility.
Overall, there are many advantages associated with issuing stocks or bonds as part of a company’s capital structure. By doing so, organizations have the potential to increase profitability and create value for investors while still maintaining control over their own destiny which is beneficial for all parties involved.