What factors should a manager consider when deciding on the amount and type of long- term debt to be used to finance a business?
Answer to relevant QuestionsWhat factors might influence the choice between a bond issue with a sinking fund requirement and a serial bond issue? How can managers estimate their firms cost of long-term debt prior to meeting with a lender? What elements must be included in a lease in order for it to be considered a financial (capital) lease? What policies and payments comprise a firm’s dividend policy? Why is determining dividend policy more difficult today than in decades past? Why should we expect a firm’s stock price to decline by approximately the amount of the dividend payment on the ex-dividend date? Why do U. S. stock prices generally fall by less than the amount of the dividend payment?
Post your question