Capital Structure

Capital Structure

Create an argument for a publically traded health care organization to issue
stocks or bonds as part of its capital structure. Provide support for your
position.

Imagine that a publicly traded health care organization has just experienced
a downgrade in its credit rating from a rating agency, such as Moody’s or
Standard & Poor’s. Determine the most likely impact that this event would
have on the publically traded health care organization. Indicate an approach
that management could take to minimize the impact that you have determined.
Provide support for your rationale.

 

…………………………..Answer preview……………………….

A publicly traded healthcare can preferably issue stock as part of capital structure in comparison to bonds. In this view, the stock in health centers that mostly include medicine, may earn more interest compared to bonds. This is because bonds may be issued to minor companies that pay back at very low interest rates while sock tends to be more consumed therefore giving more profits compared to bonds…………………………….

APA
320 words