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Sources of long term finances for Genesis Energy may be money market securities, capital market securities, bonds, valuing common stock, or valuing preferred stock. A benefit of money market securities is quick access to the cash with low risk. Capital market securities include stocks and bonds that are a term of a year or longer. Examples are corporate bonds, or common or preferred stock.

Corporate bond risk depends on the financial health of the corporation. Benefits of corporate bonds also depend on the financial health of the corporation and can be long term for years. Common stock is higher interest rate with higher risk. Common stock does not appear to have term limits or limits on maturity. Preferred stock has more risk than corporate bonds. Benefits of preferred stock depend on the rate of return.

Investor risk to help Genesis Energy involves the ability of Genesis to effectively manage their debt to assets and pay off the liabilities. The investors will most likely expect to get a large rate of return. Investors will want to be paid higher dividends which is known as the weighted average cost of capital (WACC).

According to Gurufocus.com As of today, Apple Inc's weighted average cost of capital is 9.8%. Apple Inc's ROIC % is 28.53% (Gurufocus.com, n.d.).

According to Gurofocus.com: As of today, Genesis Energy LP's weighted average cost of capital is 7.73%. Genesis Energy LP's ROIC % is 4.55%, and Cost of Debt = 129.809 / 3006.7115 = 4.3173%. (Gurufocus.com, Genesis Energy LP , 2018).

The required rate of return for Genesis Energy shareholders needs to be larger than the weighted average cost of capital. It needs to be larger than 7.74%. If you compare to Apple Inc, Apples return on investment is approximately 18% higher than their average cost of capital of 9.8%. Genesis Energy needs to raise capital to bring the return on investment higher to make it worth the sacrifice for investors.

Gurufocus.com. (2018, 02 24). Retrieved from Genesis Energy LP : https://www.gurufocus.com/term/wacc/NYSE:GEL/Weighted+Average+Cost+Of+Capital+%2528WACC%2529/Genesis+Energy+LP

Gurufocus.com. (n.d.). Apple Inc (NAS:AAPL) WACC %:9.8% As of Today. Retrieved 02 24, 2018, from https://www.gurufocus.com/term/wacc/AAPL/Weighted-Average-Cost-Of-Capital-WACC/Apple-Inc