8. The Corporate Financing Decision

  1. Pamela Peterson Drake and
  2. Frank J. Fabozzi

Published Online: 1 DEC 2011

DOI: 10.1002/9781118267790.ch8

The Basics of Finance: An Introduction to Financial Markets, Business Finance, and Portfolio Management

The Basics of Finance: An Introduction to Financial Markets, Business Finance, and Portfolio Management

How to Cite

Drake, P. P. and Fabozzi, F. J. (2010) The Corporate Financing Decision, in The Basics of Finance: An Introduction to Financial Markets, Business Finance, and Portfolio Management, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118267790.ch8

Publication History

  1. Published Online: 1 DEC 2011
  2. Published Print: 7 SEP 2010

ISBN Information

Print ISBN: 9780470609712

Online ISBN: 9781118267790

SEARCH

Keywords:

  • corporate financing decision;
  • investment opportunities;
  • corporate balance sheet;
  • capital structure decision;
  • debt ratio

Summary

This chapter contains sections titled:

  • Debt vs. Equity

  • Financial Leverage and Risk

  • Financial Distress

  • The Cost of Capital

  • Optimal Capital Structure: Theory and Practice

  • The Bottom Line

  • Solutions to Try It! Problems

  • Questions