What finance options are open to a fast growing UK Listed Maritime Assignment

What finance options are open to a fast growing UK Listed Maritime Company that is looking to expand - Assignment Example The market failure may  arise from imperfect information fuelled by volatile economic conditions where lenders become risk averse. #1 Critical evaluation of the difference between debt and equity from the perspective of a UK listed company Listed companies have a broad range of financing options available to them, which include debt and equity (Graham and Smart, 2009, p. 44). Companies utilize a blend of debt and equity funding to finance their operations. Companies bearing high credit ratings can borrow money at low interest, besides selling shares at a premium. Debt refers to money raised from banks and bondholders, while equity refers to money raised from the shareholders. In return for investing their money in a company, shareholders are rewarded with a percentage of the company (a share). Equity financing refers to issuing additional shares of common stock to investors. The issuing of common stock decreases the previous stockholders’ percentage of ownership. Debt financ ing is often accompanied by strict conditions or covenants, besides having to pay interest and principal on stipulated dates. Debt Sources of Financing Debt financing incorporates collateralized bonds, leases, bank overdrafts, debentures, lines of credit, and bank loans. A bond refers to a written promise to pay back a certain amount of money on a stipulated date in the future. In the interim, bondholders receive interest payments at fixed rates on stipulated dates. Debt financing typically includes an interest rate of about 3-8% depending on the  debt and the arrangement. The face value, maturity date, and coupon rate are evaluated at the time the bond is issued (Morris, McKay and Oates, 2009, p. 328). The shareholders assume all the risks and rewards from debt financing. As a result, debt financing can be relatively less expensive compared to equity finance depending on the expectation of the equity financiers. Equity Sources of Financing Companies usually seek capital from inve stors through the issuance of either common or preferred shares. Equity financing may also incorporate employee stock options. Equity funding does not incur interest or have to be repaid. Debt financing is usually more risky compared to equity financing, although equity financing is more expensive (Gleyberman, 2009, p. 8). Some of the advantages of debt financing include interest payments being tax deductible and that there is no dilution of ownership to the existing equity holders. The disadvantages of debt financing include the fact that the debt holder has priority over the company assets during liquidation. Besides, in cases where the investor doubts the capability of the company to meet interest payments, investors may demand higher interests to compensate for the uncertainty. In addition, there are several covenants associated with debt instruments that may constrain a company’s freedom of action (Albrecht, Stice, Stice and Swain, 2011, p. 507). In debt financing, loan repayment should be done on a predetermined date even if the business is in a loss. The cost to the company in debt financing is known beforehand. The cost to the company in debt financing is straightforward to predict, plan, and repay. Equity financing has several advantages such as no current payments due and no preferential rights on the company’s assets. The process of raising funds through equity

HUMAN REPRODUCTIVE BIOLOGY QUESTION ASSIGNMENT

HUMAN REPRODUCTIVE BIOLOGY QUESTION - Assignment Example Cystic Fibrosis that is not showing or dominant is said to be recessive. The parents thus are carriers since they appear normal yet they have a child that shows the deformity. It’s justified to say that the parents are carriers since for cystic fibrosis to manifest, like any other trait it requires two genes, one from each of the parents. Deoxyribonucleic acid (DNA) is connoted as the building block of an organism. It is known to be host to information that is crucial for a cell functioning for example protein synthesis as well as replicating itself. It contains four nucleotide bases namely: RNA appears same way as the DNA In that the two are nucleic acids with bases comprising of nitrogen and brought together by a sugar- phosphate. There are however divergences of the structures as well as functions characterizing RNA and the DNA. 6. In your own words, describe the process of protein synthesis, starting with the DNA, stored in the nucleus, and ending with the completed protein. Be sure to mention the terms code, codon, anticodon, mRNA, tRNA, amino acids and ribosomes in your answer. During protein manufacture, RNA kinds that play various roles include one, Messenger RNA referred as mRNA that is tasked with ferrying genetic message or information. A package of 3 mRNA bases within a row constitutes a codon which then defines an amino acid. The second is the Ribosomal RNA, referred as rRNA contained in ribosomes where the actual protein manufacture occurs. The third is the RNA tasked with transfer, tRNA that piles an amino acid on a developing protein. Since the DNA keeps genetic information, then the RNA ferries that message all the way to the cytoplasm, where it is utilized to manufacture proteins. Genetic counseling is a process that involves advising a couple about genetic conditions and to that effect taking a keen examination of a couple’s family back ground (OToole & Marie, 755). The doctor orders the carrying