Debt and Equity Financing Strategies

What this note covers

1. Overview: The Financing Decision
2. Short-Term Debt Financing
3. Long-Term Debt Financing
4. Equity Financing: Internal and External Sources
5. Comparing Debt and Equity: A Structured Evaluation
6. Factors Influencing the Choice of Financing Mix
7. Gearing, Financial Risk, and the Optimal Capital Structure

7 sections · 14 key terms & formulas · 6 common mistakes