Debt Financing, Firm Value, and the Cost...
Chaplinsky, Susan;...
Debt Financing, Firm Value, and the Cost of Capital
Chaplinsky, Susan; Harris, Robert S.
F-1166 | Published March 31, 1997 | 21 pages. Technical Note
Collection: Darden School of Business
Product Details
This note is suitable for an introductory MBA course in corporate finance. It explores how managers determine the proper amount of debt financing to use to fund a firm's operations. It examines the fundamental differences between debt financing and equity financing and the factors that drive the choice between them.
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