Question #1: Raising Capital and Capital Budgeting

Hello Class! For this discussion you can choose which question you respond to. Feel free to respond to both, however only one is required. Please respond to ONE of the following questions:
Question A

Businesses are always looking for ways to raise capital for further expansion or to support themselves through changing economic times. What are the two primary ways a company can raise common equity and why is there a cost associated with reinvestment earnings?
Question B

What is capital budgeting and what is the difference between independent and mutually exclusive projects?

 

Question #2: Corporate Tax Rate and Business Practices

Write a 2-3 page paper. In your paper include the following:

    An explanation on how the corporate tax rate might affect corporate business practices and why is it important to have project valuation, cash flows, and risk analysis.
    Please include information and topics from the chapter readings to justify your explanation and reasoning.

 

Include a title page and 3-5 references. Only one reference may be from the internet (not Wikipedia).  Please adhere to the Publication Manual of the American Psychological Association (APA), (6th ed., 2nd printing) when writing and submitting assignments and papers.