Capital Financing / Chander Shekhar.

Format:

Book

Author/Creator:

Shekhar, Chander, author.

Series:

SAGE skills: Business.

SAGE skills: Business

Language:

English

Subjects (All):

Capital market.

Physical Description:

1 online resource.

Place of Publication:

Los Angeles, CA : SAGE Publications, Inc., 2024.

Summary:

Companies need capital to operate. Most companies can produce goods and services that consumers demand, but organizations rarely have sufficient capital to undertake the investments that enable them to produce these goods. Companies therefore access capital from the market, but they have to decide both from where and how much capital they need. These decisions can be grouped under financing, and this Skill discusses common financing choices made by companies. It identifies common sources of financing-equity and debt-used by companies, including the associated costs and benefits. Although both equity and debt are used by companies, each entails a cost. Every company has to choose the optimal mix-that is, a mix that minimizes the cost the company incurs while ensuring that the company can raise the required amount of capital. Equity and debt investors also tend to be different from each other, so the company has to make sure that the various investors get the return they expect and that they are willing to provide the company with additional capital in the future. Capital markets also allow companies to construct and sell instruments that can act as both equity and debt. Of course, the investors for these instruments tend to be different from those that buy equity and debt, which imposes additional concerns that companies must deal with. Upon completion of this Skill, you should be able to identify the main characteristics of equity and debt as sources of capital for companies; be familiar with the properties of leasing as an additional source of debt financing; be familiar with the characteristics of hybrid securities and circumstances under which companies may use them for financing; be aware of the reasons why owners' equity is critical when investors are deciding on providing capital to a company; be able to think critically about both the pros and cons of debt financing; be able to compare and contrast the benefits of debt and equity financing; be familiar with the reasoning employed by firms when they are deciding on the amount of capital to raise from debt and equity and the choice's effect on firm value; be aware of the potential effects of an employer's (company's) choice of financing sources-especially debt financing-on employees' careers, job security, and mental well-being; and be aware of the relationship between debt financing by a company and the behavior of its suppliers and customers when the company faces financial hardship.

Notes:

Description based on publisher supplied metadata and other sources.

ISBN:

1-0719-5696-5

9781071956960

OCLC:

1456885609