i just need part 2 answered!!!

(HINI: Remember, this is related to financing not investing) 1. Discuss the advantages and disadvantages of issuing stocks verses bonds 2. Recommend how St. Sharon's Health Care should finance the expansion. PART 2: Reply to at least two classmates and evaluate his/her post. Did he/she provide accurate information? Are you in agreement with the recommendation? Please be constructive. Grading and Feedback This discussion activity is worth 20 points and will be graded 7-10 days of the due date. Check Grade Book for your grade and feedback. Review the grading rubric before beginning the assignment... aim to get "Master" scores. Discussion Rubric Responses (0) a.) Advantages of selling stock: If your business doesnt have a great credit rating you are most likely not able to borrow the money you need. If you incorporate, you can sell stocks in your comapany instead. You can attract investors based on your potential for profit growth. Disadvantage of selling stock: Selling shares of your company gives each investor a piece of ownership. This means you have to answer for all your actiosn to the shareholders, You could have to reveal information to them that you may not want your competitors to know. Advantages of selling bonds: If your company sells bonds, you agree to pay investors interest in exchange for using their money. Bondholders don't own a piece of the business and dont participate in decision making. Disadvantages of selling bonds: You have to pay interest payments on time to bondholders. You pay interest according to a strict timetable. b.) Comparing Debt and Equity Financing and Recommending How to Finance an Expansion Raising capital by selling bonds is called debt financing, whereas, raising capital by selling stock is called equity financing. Read the following scenario and answer the question. St. Sharon's Health Care has decided to expand its operations to owning and operating long-term health care facilities. The following conversation occurred between the chief executive officer, Ron Smithson, and the vice president of finance, Murphy Lee. Ron: Murphy, have you given any thought to how were going to finance the acquisition of St. Sharon's Health Care? Murphy: Well, we have two basic options, we either sell stock or sell bonds. The current equity market is a little soft and rumor is that the Federal Reserve Bank may increase the interest rate later this month or next. Ron: Yes, Ive heard that too. The problem is, we don't have time to wait, especially on a rumor. We need to make a decision by the end of this week if we want to be in position to complete the acquisition under the current terms. Murphy: The bond market is strong right now as investors are looking for a secure cash flow with minimal risk. I think our best choice is to issue bonds. Ron: I have to agree and St. Sharon's financial statements show it can take on debt. The only thing that is worrisome is the cash flow issues from delayed insurance and government reimbursement. But, that is the nature of the industry, isn't it? Directions: Part 1: Create a post by answering the questions below. Use business writing, provide examples, and include visuals to be clear in your explanation. Refer to the grading rubric and check the Course Calendar for the due date for Part I of this forum. (HINT: Remember, this is related to financing, not investing) 1. Discuss the advantages and disadvantages of issuing stocks verses bonds (HINI: Remember, this is related to financing not investing) 1. Discuss the advantages and disadvantages of issuing stocks verses bonds 2. Recommend how St. Sharon's Health Care should finance the expansion. PART 2: Reply to at least two classmates and evaluate his/her post. Did he/she provide accurate information? Are you in agreement with the recommendation? Please be constructive. Grading and Feedback This discussion activity is worth 20 points and will be graded 7-10 days of the due date. Check Grade Book for your grade and feedback. Review the grading rubric before beginning the assignment... aim to get "Master" scores. Discussion Rubric Responses (0) a.) Advantages of selling stock: If your business doesnt have a great credit rating you are most likely not able to borrow the money you need. If you incorporate, you can sell stocks in your comapany instead. You can attract investors based on your potential for profit growth. Disadvantage of selling stock: Selling shares of your company gives each investor a piece of ownership. This means you have to answer for all your actiosn to the shareholders, You could have to reveal information to them that you may not want your competitors to know. Advantages of selling bonds: If your company sells bonds, you agree to pay investors interest in exchange for using their money. Bondholders don't own a piece of the business and dont participate in decision making. Disadvantages of selling bonds: You have to pay interest payments on time to bondholders. You pay interest according to a strict timetable. b.) Comparing Debt and Equity Financing and Recommending How to Finance an Expansion Raising capital by selling bonds is called debt financing, whereas, raising capital by selling stock is called equity financing. Read the following scenario and answer the question. St. Sharon's Health Care has decided to expand its operations to owning and operating long-term health care facilities. The following conversation occurred between the chief executive officer, Ron Smithson, and the vice president of finance, Murphy Lee. Ron: Murphy, have you given any thought to how were going to finance the acquisition of St. Sharon's Health Care? Murphy: Well, we have two basic options, we either sell stock or sell bonds. The current equity market is a little soft and rumor is that the Federal Reserve Bank may increase the interest rate later this month or next. Ron: Yes, Ive heard that too. The problem is, we don't have time to wait, especially on a rumor. We need to make a decision by the end of this week if we want to be in position to complete the acquisition under the current terms. Murphy: The bond market is strong right now as investors are looking for a secure cash flow with minimal risk. I think our best choice is to issue bonds. Ron: I have to agree and St. Sharon's financial statements show it can take on debt. The only thing that is worrisome is the cash flow issues from delayed insurance and government reimbursement. But, that is the nature of the industry, isn't it? Directions: Part 1: Create a post by answering the questions below. Use business writing, provide examples, and include visuals to be clear in your explanation. Refer to the grading rubric and check the Course Calendar for the due date for Part I of this forum. (HINT: Remember, this is related to financing, not investing) 1. Discuss the advantages and disadvantages of issuing stocks verses bonds