Page 4 - PowerPoint Presentation
P. 4

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.















                                                                                                                                        4
   1   2   3   4   5   6   7   8   9