Finance FIN 3400: Submission Preview

The submissions for this assignment are posts in the assignment's discussion. Below are the discussion posts for Sofie Micklisch, or you can view the full discussion.

Sofie Micklisch

Florida SouthWestern State College

Finance Discussion

A company such as Glencore has many different types of materials that it markets and produces. These materials are metals and minerals, energy products, and agricultural products (Glencore, 2015). Glencore also strives for diversity, and the company offers a wide range of products at different locations (Glencore, 2015). It has the potential to become a company that investors would want to invest in. In order for Glencore to be a profitable company it needs to focus on its stakeholders. If the company looks like it is running into too much debt then the stakeholders will be at risk (Block, Hirt, & Danielsen, 2014).

Taking out loans and borrowing money is going to put Glencore at risk, and it could be a reason that investors may not want to invest in the company (Block et al., 2014). The more Glencore borrows the more they will have to pay back in the future. Glencore may have managed to pay off their dividends, but if they choose to borrow more money in the future they will likely be charged a higher interest rate (Riseborough, 2015). Financial debt in a company could cause microeconomic distress (Samberg, 2002). Glencore strives to be diverse, and it sells its products to multiple different countries (Glencore, 2015). The company has to be careful when selling its products to these different countries because of the differences in pricing. The company also has to be aware of the different rules and regulations as well as who it borrows money from (Riseborough, 2015). If they company borrows money from another country it has to be aware that prices in interest could change over time.

References

Glencore. (2015). What we do. Glencore. Retrieved from http://www.glencore.com/who-we-are/what-we-do/

Riseborough, J. (2015). Glencore’s unforgettable week ended right back where it started. Bloomberg Business. Retrieved from http://www.bloomberg.com/news/articles/2015-10-02/glencore-s-unforgettable-week-ended-right-back-where-it-started

Block, S., Hirt, G., & Danielsen, B. (2014). Chapter 5: Operating and Financial Leverage. Foundations of Financial Management. New York: McGraw-Hill Education.

Samberg, G. (2002). Debt restructuring: Trade finance falls from favour. International financial law review, 21(11). Retrieved from http://db07.linccweb.org/login?url=http://search.proquest.com.db07.linccweb.org/docview/233204344?accountid=10674

Sofie Micklisch
Florida SouthWestern State College
Finance Discussion
           A company such as Glencore has many different types of materials that it markets and produces. These materials are metals and minerals, energy products, and agricultural products (Glencore, 2015). Glencore also strives for diversity, and the company offers a wide range of products at different locations (Glencore, 2015). It has the potential to become a company that investors would want to invest in. In order for Glencore to be a profitable company it needs to focus on its stakeholders. If the company looks like it is running into too much debt then the stakeholders will be at risk (Block, Hirt, &amp; Danielsen, 2014).
            Taking out loans and borrowing money is going to put Glencore at risk, and it could be a reason that investors may not want to invest in the company (Block et al., 2014). The more Glencore borrows the more they will have to pay back in the future. Glencore may have managed to pay off their dividends, but if they choose to borrow more money in the future they will likely be charged a higher interest rate (Riseborough, 2015). Financial debt in a company could cause microeconomic distress (Samberg, 2002). Glencore strives to be diverse, and it sells its products to multiple different countries (Glencore, 2015). The company has to be careful when selling its products to these different countries because of the differences in pricing. The company also has to be aware of the different rules and regulations as well as who it borrows money from (Riseborough, 2015). If they company borrows money from another country it has to be aware that prices in interest could change over time.
 
References
Glencore. (2015). What we do. Glencore. Retrieved from <a href="http://www.glencore.com/who-we-are/what-we-do/">http://www.glencore.com/who-we-are/what-we-do/</a>
Riseborough, J. (2015). Glencore’s unforgettable week ended right back where it started. Bloomberg Business. Retrieved from <a href="http://www.bloomberg.com/news/articles/2015-10-02/glencore-s-unforgettable-week-ended-right-back-where-it-started">http://www.bloomberg.com/news/articles/2015-10-02/glencore-s-unforgettable-week-ended-right-back-where-it-started</a>
Block, S., Hirt, G., &amp; Danielsen, B. (2014). Chapter 5: Operating and Financial Leverage. Foundations of Financial Management. New York: McGraw-Hill Education.
Samberg, G. (2002). Debt restructuring: Trade finance falls from favour. International financial law review, 21(11). Retrieved from <a href="http://db07.linccweb.org/login?url=http://search.proquest.com.db07.linccweb.org/docview/233204344?accountid=10674">http://db07.linccweb.org/login?url=http://search.proquest.com.db07.linccweb.org/docview/233204344?accountid=10674</a>