Business must have assets in order to operate

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Reference no: EM132290686

A business must have assets in order to operate. This means it must raise capital. There are 2 forms of capital: debt and equity. These 2 forms provide a permanent financing base without a contractually fixed cost. For this assignment, you will explore the debt side of the equation.

First, discuss what the cost of money is. Then discuss the 4 components that affect the cost of money. Secondly, define what is meant by the term: long-term debt. Identify and discuss 3 types of long-term debt financing. Be sure to comment on the features of each type. Comment on how you would use these tools as a manager.

Reference no: EM132290686

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