Page 148 - 5.2 i. Manac Finance ITC Summarised Notes
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THE FINANCING DECISION
Financing decision
After the company has made the investment decision and has decided to
invest they then need to decide how the investment should be financed.
There are two separate decisions to be made:
1. Should the company use debt/equity (does the company have
capacity to raise debt).
2. If the company has the capacity to raise debt, what is the cheapest
form of debt finance.
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