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Copyright © 2007 South-Western. All rights reserved.
Chapter 16
Financing
Copyright © 2007 South-Western. All rights reserved.
Financing
2
Learning Objectives
Financing
Remedies Equity
Composition Securities
Other Methods
Debt
Copyright © 2007 South-Western. All rights reserved.
Financing
3
The Key Decisions in Running a Business
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Financing
4
Debt Financing
DebtEquitySecuritiesOther MethodsCompositionRemedies
Interest
Capital
Collateral
Loan Rate
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Financing
5
Fixed versus Floating Rates
DebtEquitySecuritiesOther MethodsCompositionRemedies
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Financing
6
Types of Loans
DebtEquitySecuritiesOther MethodsCompositionRemedies
Ongoing Operations
Term Loan
Line of Credit
SBA 7(a)
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Financing
7
Bonds
DebtEquitySecuritiesOther MethodsCompositionRemedies
Indenture
Secured Bonds
Unsecured Bonds
Protective Covenants
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Financing
8
Commercial Paper
DebtEquitySecuritiesOther MethodsCompositionRemedies
Commercial Paper
Short Term
Interest Rates
$1 Million Multiples
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Financing
9
Common Creditors
DebtEquitySecuritiesOther MethodsCompositionRemedies
Commercial Banks
Savings Institutions
Finance Companies
Pension Funds
Insurance Companies
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Financing
10
Equity Financing
DebtEquitySecuritiesOther MethodsCompositionRemedies
Retained Earnings
Dividend Policy
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Financing
11
Stock
DebtEquitySecuritiesOther MethodsCompositionRemedies
Common Stock
Preferred Stock
Venture Capital
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Financing
12
Public Firms
DebtEquitySecuritiesOther MethodsCompositionRemedies
IPO
Stock Mutual Funds
Secondary Market
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Financing
13
Debt versus Equity
DebtEquitySecuritiesOther MethodsCompositionRemedies
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Financing
14
Issuing Securities
DebtEquitySecuritiesOther MethodsCompositionRemedies
DistributionOriginationUnderwriting
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Financing
15
Supplier Financing
DebtEquitySecuritiesOther MethodsCompositionRemedies
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Financing
16
Leasing
DebtEquitySecuritiesOther MethodsCompositionRemedies
Full Control
Lease Period
Lease Payments
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Financing
17
Capital Structure
DebtEquitySecuritiesOther MethodsCompositionRemedies Vs.
Debt Equity
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Financing
18
Remedies for Debt
DebtEquitySecuritiesOther MethodsCompositionRemedies
Formal Remedies
Extension
CompositionLiquidation
Bankruptcy
