Raising Capital.
Not what you're looking for?
How do companies decide in practice which route to follow in raising capital? The decision is complex and related to a company's balance sheet, market conditions, outstanding obligations and a host of other factors.
Purchase this Solution
Solution Preview
There are two ways in which a company can raise capital--debt and equity. Let's start with debt financing. This occurs when the company borrows money promising to repay both the principal and interest by a certain date--thus a loan. The downside of this is that if you fail to make payments, your might go into default and eventually lose your company. Debt can also take the form of bonds. Some of the advantages of raising capital via debt are:
1. Tax benefits--when you borrow money, you are permitted to deduct the interest expenses from your taxable income. ...
Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Introduction to Finance
This quiz test introductory finance topics.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.