Discuss the overall impact of the recent Federal Reserve interest rate hikes on capital structure and capital
Question:
Discuss the overall impact of the recent Federal Reserve interest rate hikes on capital structure and capital budgeting within small, medium, and large businesses. (hint: This discussion should mention capital structure and the varying capital structures typical of corporations based on size.) Further discuss the impact of increasing interest rates on DCF methods of capital budgeting analysis. For example, what impact does increasing interest rates have on NPV, IRR, and Payback? To conclude your initial post, discuss the overall impact of higher interest rates on the economy and the potential for a recession.
Keep the focus of this discussion board on corporate finance and capital budgeting.
Statistics For Business And Economics
ISBN: 9780132745659
8th Edition
Authors: Paul Newbold, William Carlson, Betty Thorne