Rrodriguez_mod2assignment_111923

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1 Module 2 Course Project- Capital Markets Renee Rodriguez Rasmussen University B428/ECO 4223 Section 01-Money and Banking Kenneth Ritz November 19, 2023

2 Module 2 Course Project-Capital Markets Part 1 I was asked to consider what options US Bank has for expanding its business through the following processes:  Raising Capital  Issuing Stock  Issuing Bonds  Securitizing Loans  Other options I was also asked to consider the pros and cons for each option, what option is the easiest to pursue? Which option would the current executive management most willingly entertain and explain my reasoning? Raising Capital Capital can be raised by obtaining funding from investors to fund business activities. The main advantage of raising money is that it enables a corporation to grow its operations and overall assets, which may lead to more revenue and profits. A company can lower its debts obligations by capital raising, which can boost its credit rating. The drawback of raising capital is that, depending on the type of security issues, it may be challenging to draw investors and that financing costs may be expensive. Issuing Stock Offering shares of a company’s ownership to investors in return for money is known as issuing stock. The ability to generate significant quantities of cash is the main advantage of issuing shares. It also, enables a corporation to have a bigger shareholder base, which can aid in distributing the ownership of the organization. The biggest disadvantage of issuing stock is that it forces the organization to give up a portion of its ownership, which may influence how decisions are made. Issuing Bonds

3 Bond issuance is the practice of providing investors with debt securities in return for money. The main advantage of issuing bonds is that it enables a company to swiftly raise significance sums of money. Also, it permits a company to spread out its loan commitments over a longer period. This can assist in lowering the overall cost of borrowing. The drawback of issuing bonds is that the corporation must pay interest on the loan, and if it isn’t able to make payments on time, its credit score may be impacted. Securitizing Loans Loan securitization is the process of combining a few loans into a single asset that can be sold to investors. Securitizing loans enables a company to swiftly raise substantial quantities of cash, which is its main advantage. Also, it enables a company to distribute its loan portfolio among a greater number of investors, which might aid in lowering the risk of default. The con of securitizing loans is that the business must pay interest on the debt, and if its unable to make payments on time, its credit score maybe impacted. Other Options There are other options like funding through venture capital or private equity. These choices can give a company the money it needs to launch or grow, but they have a higher cost of capital and frequently call for long-term commitment from the company. Decision Of all the above options. I think that issuing stock would be the easiest and most cost-effective option to pursue. This would have minimal paperwork and can be completed fast. Also, venture capital and private equity funding would provide a higher quantity of funds and can give access to more experienced investors, the existing top management would probably be open to considering them. Part 2 Diversity and Inclusion

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4 Businesses of all types of value diversity and inclusion(D&I), especially those businesses in the finance industry. US Bank can guarantee that its goods and services are available to all clients, regardless of gender, color, ethnicity, age, and other characteristics by partnering with companies that emphasize D&I. US Bank can also emphasize D&I by making sure that its own workforce is inclusive and diverse, which will boost worker morale and productivity. Lastly, working with organizations that value D&I would help US Bank gain new clients and forge connections with other businesses that share its commitment to D&I. US Bank can gain by looking at funding possibilities from companies that place a high priority on D&I. By doing this, US Bank can make sure that its clientele, staff, and business connections are inclusive and varied. This may aid US Bank in maintaining its position as a leader in the financial industry and building a more prosperous and equitable company. In conclusion, it would be beneficial for US Bank to pursue funding possibilities from other companies that place a priority on diversity and inclusion. By acting in this manner, US Bank will be able to increase the diversity and inclusiveness of its customer base, personnel, and commercial partnerships. This has the potential to assist US Bank in remaining competitive in the financial market and in developing a firm that is more equitable and prosperous.

5 References Gillespie, G. (2021). What Is Issuing Stock? Investopedia. Retrieved from https://www.investopedia.com/terms/i/issuingstock.asp. Henderson, J. (2020). What Is Raising Capital? Investopedia. Retrievedfromhttps://www.investopedia.com/terms/r/raisingcapital.asp

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