Financing Choices in the Equity and Debt Markets

Critically review the advantages and disadvantages of the main funding options.

In your analysis, you should review the different types of financing choices available in the equity and debt markets and discuss how beneficial interest rate swaps are in reducing financing costs and eliminating interest-rate risk. Critically discuss and compare the use of derivatives, including forwards, futures, options, and swaps, to hedge Foreign Exchange (FX) Risk. Your discussion must include the following: how it works in mitigating FX risk; advantages and disadvantages of each type of derivative in managing FX risk.