Companies raise funds through debt capital (principally through bonds) or equity (common stock). More than 15 years

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Companies raise funds through debt capital (principally through bonds) or equity (common stock). More than 15 years ago the CFO of Home Depot spoke at Nova. He was asked the following question: "Why does HD not have any long term debt or much debt at all to speak of?" His answer: "because we like to sleep at night." Comment on debt and equity and the capital structure of a company. For example, is it wise to have no debt? Would the CFO's answer be acceptable if you were a shareholder?
Capital Structure
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a...
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Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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