AboutWarren D. Miller, CFA, ASA, CPA Expertise My in-depth knowledge of economics is confined to three sub-disciplines: Austrian economics, industrial organization, and evolutionary economics. Other questions dealing with macroeconomics, the traditional neoclassical paradigm, labor economics, environmental economics, agricultural economics, health economics, and so on should go to those who have the appropriate expertise.
N.B.: I DO NOT ANSWER QUESTIONS MARKED 'PRIVATE' because I believe that knowledge should be shared, not hoarded. I also believe that such questions are likely to come those trying to cheat. Similarly, as one who was a full-time academic for half a decade, I can recognize test and homework questions several time zones away. Therefore, please do not demean yourself by submitting such questions to me. Those who do so are cheating, pure and simple, and I WILL call you out publicly if I believe you are doing so. I have a zero-tolerance policy where cheating and dishonesty are concerned.
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Finally, please DO NOT ask for investment advice. I am not licensed to provide such advice. If you want such advice, check with your financial planner or other financial adviser.
Experience I work with Austrian economics (which is different in major respects from the traditional neoclassical model), industrial organization (which is about industry structure, conduct, and performance), and evolutionary economics (almost, but not quite, the economic analog of its biological counterpart) everyday in my work. I appraise closely-held businesses, provide exit-planning services, and offer high-level strategic analysis, advice, and clients to CEOs and owners of mid-sized businesses. Understanding, applying, and writing about these disciplines is an essential part of how I have made my living since 1993.
Organizations CFA Institute, Strategic Management Society, American Society of Appraisers, Institute of Management Accountants, Academy of Management, Culver Legion
Publications CFA Magazine, Strategic Finance, Valuation Strategies, Value Examiner, Journal of Advanced Property Economics, Harvard Business Review, American Fly Fisher, CFA Digest, CPA Expert, and Business Valuation Review, among others
Education/Credentials MBA - Oklahoma State (1991)
BBA - U. of Oklahoma (1975)
Chartered Financial Analyst designation (2006)
Accredited Senior Appraiser (2006)
Certified Management Accountant (1992)
Certified Public Accountant (1992)
I am searching for the total amount of fund raised by US by means of Debt and Equity each year from 2001 to 2007. I dont know where to look for the information I am seeking. Can you help me??
ANSWER: Dear Jack--
Thank you for your question, and thank you for using AllExperts.com. I am happy to try to help you with this question.
First, however, I need you to phrase the question more precisely. For instance, you use the phrase, "raised by U.S." Do you mean "raised by U.S. companies"? I assume you do, but I have to ask. If that's not what you mean, please explain.
Second, do you mean publicly-held companies, privately-held ones, or both?
Third, would you want to include funds raised by non-U.S. companies for investments in the U.S.?
Fourth, I'm curious as to why you want to know these figures, assuming they're available, which I'm not sure they are. Why, indeed?
As you can see, Jack, economics requires precise thinking. I'm sure you can do that, so please word your question more precisely, and I'll be glad to try to help.
Take care--
Warren
---------- FOLLOW-UP ----------
QUESTION: Respected Warren D.
Thank you for your kind reply. I am searching for the funds raised by U.S which includes both private and public companies and also include Non U.S. companies who have raised money in U.S. for investment in U.S. By getting this Data I will have idea about which is more popular in U.S. for raising money, Debt or Equity? and can also search for reasons behind that, which can consequently related with other factors such as interest rate, inflation, GDP or recession.
Answer You answered some, but not all, of my questions, Jack. Therefore, I won't be able to do much to help you here. I recommend that you look on the Department of Commerce website (http://www.doc.gov) for statistics gathered, compiled, and published by agencies (e.g., Bureau of Economic Analysis, Bureau of Labor Statistics, Bureau of the Census, etc.) within the DOC. Those will be the best and most reliable sources.
For newer businesses, you should look at the website of the U.S. National Venture Capital Association (www.ncva.org). They do a pretty good job w/the new-capital side of the world.
You will also need to think through how you will treat "hybrid" finance classes: preferred stock (which has attributes of both debt and equity), convertible preferred stock, warrants, and options. You will want to think about all of these.
In the U.S., debt is more popular than equity, and for a very simple economic reason (which you didn't include in your "other factors": interest paid on debt is tax-deductible in the U.S., while dividends paid on equity are NOT tax-deductible. Therefore, for healthy companies, debt has an after-tax cost in the range of 4-6%, while equity has an after-tax cost for those same companies of 10-15%. It's not any wonder to anyone--EXCEPT those who are ignorant of economics (i.e., human nature)--why there is a lot more debt than equity in the U.S.!
Sorry I can't do more, but I think you can find the answers to your questions in the sources I've given you. Don't overlook the effect of the very different tax treatment of debt and equity.
Hope this helps. Please fill out the 'rate the expert' email you'll be getting at nearly the same time you get this. That helps me do a better job of helping folks like you.
