financial managementits a case studies kindly help me out wit the ans in detail 1. Which type of financing is appropriate to each firm?2. What types of securities must be issued by a firm which is...

financial management

its a case studies kindly help me out wit the ans in detail

1. Which type of financing is appropriate to each firm?
2. What types of securities must be issued by a firm which is on the growing stage in order to meet
the financial requirements?

3 Answers | Add Yours

litteacher8's profile pic

litteacher8 | High School Teacher | (Level 3) Distinguished Educator

Posted on

In order to answer this question, we need the information from the case studies.  In order to address question 1, you need to consider what the firm's long and short term goals are and its financial stability and credit situation.  In order to answer number 2, you need to understand number 1 because issuing securities is not always approrpritate.

bhavikpatel31286's profile pic

bhavikpatel31286 | College Teacher | eNotes Newbie

Posted on

Any firm can issue bonds, debentures or shares of it stock for accessing the funds it requires. In the case of a company on the growth stage too any of the ones mentioned can be used.

In the case of bonds the company will have to pay a regular interest every year to its bond holders and after a number of years specified when the bond is created will pay the bond holders and buy back the bonds. The same goes for debentures, but the company at the end of their terms has the option to either buy them for money or give shares of its stock in exchange for the debentures. Directly selling shares of its stock will dilute ownership but the company does not have any further financial obligations.

supriyakharade's profile pic

supriyakharade | Student, Undergraduate | eNotes Newbie

Posted on

 Which type of financing is appropriate to each firm?
2. What types of securities must be issued by a firm which is on the growing stage in order to meet
the financial requirements?

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