Part IV

Long-term Financing and Dividend Decisions

After determining the size of the fixed and current assets, funds are then raised to finance these assets. The raising of funds involves a few issues, such as the size of funds, their sources and what should be the ratio between the different types of funds. Again, as far as the sources of funds are concerned, the choice of internal sources or retained earnings cannot be overlooked. The size of retained earnings depends inter alia on the firm’s dividend policy and, therefore, dividend decisions are related to the financing decisions.

The present part discusses these issues. The discussion is divided into the following chapters:

  1. Capitalisation
  2. Capital Structure
  3. Corporate Securities
  4. Term Loans ...

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