External Financing We examined two important topics in finance during this unit: external financing requirements and agency conflicts. Address the prompts below in your essay. Include an introduction

12/8/21, 4:36 PM Originality Report https://online.columbiasouthern.edu/webapps/mdb-sa-BB5f85d6ea5857f/originalityReport/ultra?attemptId=8c6df360-77ee-4bc6-abab-e94bf46ea4ab& … 1/3 % 20 % 18 %4 SafeAssign Originality Report CSU SafeAssign Plagiarism Check Tool •SafeAssign Originality Report Generator III % 42 Total Score : High risk George Landry Submission UUID :1736eb71-d8d8-a0b2-e242-1adf140a7d17 Total Number of Reports 1 Highest Match 42 % External Financing.edited.docx Average Match 42 % Submitted on 12/08/21 04:34 PM EST Average Word Count 710 Highest : External Financing.edited.docx % 42 Attachment 1 Global database (3) Student paper Student paper Student paper Institutional database (7) Student paper Student paper Student paper Student paper Student paper Student paper Student paper Internet (1) ssrn Top sources (3) Excluded sources (0) View Originality Report - Old Design Word Count :710 External Financing.edited.docx 11 9 8 6 3 5 2 1 10 4 7 11 Student paper 6 Student paper 9 Student paper 5 External Financing George Landry Columbia Southern University External Financing Introduction External In simple terms, external organization's funds from outside its business. Di loans, debentures, preferred stock, and equity capital (Grundy & Verwijmeren, 2017). All these sources depend on a it comes to the choice of the best to use. Extensive research indicates that Hungary and Poland have moderately high gross external higher than GDP. This can be attributed to their amortization of long-term and medium liabilities and short-term debt. Hungary minimizes its needs for external nancing by holding a current account surplus. This discussion aims at discussing the essentiality of external with examples. External Financing Requirements External First, they help a business preserve its resources for better investment or other purposes. Secondly, they enable an organization to purchase signi ness. Furthermore, external 1 2 12/8/21, 4:36 PM Originality Report https://online.columbiasouthern.edu/webapps/mdb-sa-BB5f85d6ea5857f/originalityReport/ultra?attemptId=8c6df360-77ee-4bc6-abab-e94bf46ea4ab& … 2/3 Source Matches (14) Student paper 100 % Student paper 84 % Student paper 68 % Student paper 64 % Student paper 92 % (Grundy & Verwijmeren, 2017). Various factors must be considered when deciding on First, the payout ratio must be considered as it measures the pro Secondly, the capital intensity ratio must be considered. It shows the amount of capital a Simply put, it recognizes the amount of capital a Additionally, a linked to the method of Moreover, the be considered, and it is always advisable for an organization to pursue Agency Con Agency con There are three types of agency con stockholders v/s creditors, stockholder v/s other stakeholders, and stockholders v/s management. In the case of stockholders v/s management, big organizations can have signi An organization should always aim to separate ownership from management or vice versa as there is no motive for them to be part of management. Ensuring that management is separated from the owners makes it easier for an organization to perform e agers' decisions not getting in In the case of stockholders v/s creditors, the stockholders can select a risky project to make more pro However, this results in more risks on the rate of return on the existing organizational debts, leading to a general decrease in the value of pending debts (Ekponon, 2019). Failure of the project can result in con debts. The third type of agency con ers, including employees, customers, and communities, and may many more (Ekponon, 2019). For instance, an employee can demand a pay rise, and in case the stakeholders reject it, there might be a con References Ekponon, A. (2019). Agency Con SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3440168 Grundy, B., & Verwijmeren, P. (2017). The External Financing of Investment. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2986127 Hardouvelis, G., Papanastasopoulos, G., Thomakos, D., & Wang, T. (2019). External Financing, Growth, and Stock Returns. European Financial Management, 18(5), 790-815. https://doi.org/10.1111/j.1468-036x.2012.00656.x 3 4 5 6 7 8 9 10 8 9 11 11 1 Student paper Columbia Southern University Original source Columbia Southern University 2 Student paper External Financing Requirements Original source Importance of External Financing Requirements 3 Student paper Various factors must be considered when deciding on Original source Key factors must be considered when determining external 4 Student paper Secondly, the capital intensity ratio must be considered. Original source Capital intensity ratio 5 Student paper There are three types of agency con Original source There are three main types of agency con 12/8/21, 4:36 PM Originality Report https://online.columbiasouthern.edu/webapps/mdb-sa-BB5f85d6ea5857f/originalityReport/ultra?attemptId=8c6df360-77ee-4bc6-abab-e94bf46ea4ab& … 3/3 Student paper 69 % ssrn 86 % Student paper 100 % Student paper 85 % Student paper 67 % Student paper 100 % Student paper 85 % Student paper 100 % Student paper 100 % 6 Student paper stockholders v/s creditors, stockholder v/s other stakeholders, and stockholders v/s management. Original source The types of agency con Creditors, and Stockholders v/s other Stakeholders 7 Student paper Agency Con Original source Agency Con 8 Student paper SSRN Electronic Journal. Original source SSRN Electronic Journal 9 Student paper https://doi.org/10.2139/ssrn.3440168 Original source https://doi.org/10.2139/ssrn.2304653 10 Student paper The External Financing of Investment. Original source Importance of External Financing 8 Student paper SSRN Electronic Journal. Original source SSRN Electronic Journal 9 Student paper https://doi.org/10.2139/ssrn.2986127 Original source https://doi.org/10.2139/ssrn.2304653 11 Student paper Hardouvelis, G., Papanastasopoulos, G., Thomakos, D., & Wang, T. Original source Hardouvelis, G., Papanastasopoulos, G., Thomakos, D., & Wang, T 11 Student paper External Financing, Growth, and Stock Returns. European Financial Management, 18(5), 790-815. https://doi.org/10.1111/j.1468-036x.2012.00656.x Original source External Financing, Growth, and Stock Returns European Financial Management, 18(5), 790–815 https://doi.org/10.1111/j.1468-036x.2012.00656.x