An Overview of Corporate Financing推荐.pdf

PART 4 CHAPTER FINANCING DECISIONS AND MARKET EFFICIENCY An Overview of Corporate Financing We now begin our analysis of long-term financing paid. Stockholders, on the other hand, have complete decisions—an undertaking we will not complete until control of the firm, providing that they keep their promises Chapter 25. This chapter provides an introduction to to lenders. As owners of the business, stockholders corporate financing. It reviews with a broad brush several have the ultimate control over what assets the company topics that will be explored more carefully later on. buys, how the assets are financed, and how they We start the chapter by looking at aggregate data are used. Of course, in large public corporations the on the sources of financing. Much of the money for new stockholders delegate these decisions to the board of investments comes from profits that companies retain directors, who in turn appoint senior management. In and reinvest. The remainder comes from selling new these cases effective control often ends up with the debt or equity securities. These financing patterns raise company’s management. several interesting questions. Do companies rely too The simple division of cash flow among debt and heavily on internal financing rather than on new issues equity glosses over the many different types of debt that of debt or equity? Are debt ratios of U.S. corporations companies issue. Therefore, we close our discussion dangerously high? How do patterns of financing differ of debt and equity with a brief canter through the main across the maj