Financing Decisions

Scope of Financing Decisions

Sources of Funds
Cost of Capital
Debt- Equity Mix
Financial Leverage
Value of the firm

Sources of Funds
Debt
Equity
Hybrid

Debt Capital Long Term

Loans from banks and financial institutions
Issue of bonds
Secured / Unsecured
Listed / non listed
Zero coupon / coupon rate bonds
With Options / without options
Callable
Puttable

Leasing

Alternative LT Debt capital

Works in the way of periodic payments
No ownership
No control