week 1 discussion 1

week 1 discussion 1

1.Why do firms issue debt securities instead of just borrowing from banks? 2.Do you believe that valuation in finance is about searching for the “true” value of an asset, or a company, or a security?

 debt securities  Valuation and “True” Value
400 words
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Firms prefer the issuing of debt securities instead of borrowing bank loans because the process involved in the loan borrowing is costly and time-consuming. Moreover, the process of issuing debt securities is viewed by most companies as less prohibitive and cheaper than the option of borrowing loans. Additionally, bank loans have fixed interest rates compared to securities that are serviced based on profit levels. The fixed interest rates……………………

APA 433 words