External capital can be obtained in to major ways of issuing securities: the first of these is debt financing built on the basis of obtaining loans, leases, or issuing commercial paper, corporate bonds et cetera. This type of financing is tax-deductible. The second is equity financing through common stock, preferred stock or warrants. Equity financing is non-tax deductible and junior to debt financing – money can only be transferred to investors after debt payments have been made. Large... [continues]
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(2008, 08). What Factors Determine a Firm’s Financing Choice?. StudyMode.com. Retrieved 08, 2008, from http://www.studymode.com/essays/Factors-Determine-Firm-s-Financing-Choice-159112.html
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"What Factors Determine a Firm’s Financing Choice?." StudyMode.com. 08, 2008. Accessed 08, 2008. http://www.studymode.com/essays/Factors-Determine-Firm-s-Financing-Choice-159112.html.