January 2018
Beginner
976 pages
142h 14m
English
book
Principles of Managerial Finance, 15th Edition
by Scott B. Smart, Chad J. Zutter, Lawrence J. Gitman
Content preview from Principles of Managerial Finance, 15th Edition
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Part Six Long-Term Financial Decisions
Chapters 10 through 12 focused on how firms should invest money, but those chapters were silent on where firms obtained the money to invest in the first place. In Chapters 13 and 14, we examine firms’ long-term financial decisions. Broadly speaking, these chapters focus on the tradeoffs associated with different sources of investment capital.
Chapter 13 looks at the firm’s most basic long-term financial decision: whether to raise money by selling stock (equity) or by borrowing money (debt). We call a firm’s mix of debt and equity financing its capital structure. Some firms choose a ...
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