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Optimal capital structure
Theoretically, enterprises should try to maintain a certain optimal capital structure, a perfect mix of financing (debt and equity), which results in the lowest possible weighted average cost of...
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Sources of financing
When it comes to sources of financing, firms at any stage of the company’s life cycle have three options from which to choose: Internal financing – using retained profits. External financing – using...
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External sources for financing Pearlparadise.com
Let’s use Portia as an ongoing example. Portia can consider using external financing, which refers to funds invested by outside investors and lenders. External financing is divided into equity and debt...
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