Debt Vs. Equity Financing

Essay specific features

 

Issue:

Business

 

Written by:

David J

 

Date added:

September 11, 2012

 

Level:

University

 

Grade:

C

 

No of pages / words:

2 / 426

 

Was viewed:

8223 times

 

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Essay content:

This is something that most companies do not look into. Debt financing is split up into two different categories. They are long term debt financing and short term debt financing. Long term debt financing include items such as equipment, land, buildings, and machinery. According to Ward, (2008), with long term debt financing, the scheduled repayment of the loan and the estimated useful life of the assets extends over more than one year...
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Short term debt financing is money that is needed for businesses on a day-to-day basis. This would include inventory, supplies, and paying the employees that is owe to them. They are called short term debt because the money that was borrowed will be expected to be paid back in less than one year. Some examples of this type of financing would be income Bonds, Bank Loan, Zero coupon bonds, and convertible bonds...
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