Question: Describe the relationship between internal and external financing in meeting
Describe the relationship between internal and external financing in meeting the long-term financial needs of a firm.
Answer to relevant QuestionsWhat are the major sources of long-term funds available to business corporations? Indicate their relative importance. What are bond ratings? According to the behavior of interest rates in Figure 10.5, were investors more concerned or less concerned about risk over the 2002-2006 time period? Explain. “Taxes on capital gains can be deferred.” Explain what is meant by this statement. Under what economic forecast would you believe an auto manufacturer would be a good investment? A computer manufacturer?
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