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Financing and dividends

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Please assist in explaining the following questions:

What factors does a firm consider when determining sources of financing?

Why would a firm continue to pay dividends when it needs financing to support its business?

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The response discusses the Financing and dividends

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Please assist in explaining the following questions:

What factors does a firm consider when determining sources of financing?

Source of financing is a capital structure decision. The term capital structure is used to represent the proportionate relationship between debt and shares. The various means of financing represent the financial structure of an enterprise. Thus the composition of debt and shares represents the capital structure of the firm. One should ...

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