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LONG-TERM FINANCING  – AN INTRODUCTION Chapter 15 of the Textbook
Chapter Outline ,[object Object],[object Object],[object Object],[object Object],[object Object]
Methods of Securing Financing
15.1 Common Stock ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Par and No-Par Stock ,[object Object],[object Object],[object Object],[object Object],[object Object]
Authorized vs. Issued Common Stock ,[object Object],[object Object],[object Object]
Contributed Surplus ,[object Object],[object Object],[object Object]
Retained Earnings ,[object Object],[object Object]
Market Value, Book Value, and Replacement Value ,[object Object],[object Object],[object Object],[object Object],[object Object]
Market Value, Book Value, and Replacement Value (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Market Value, Book Value, and Replacement Value (continued) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Shareholders’ Rights ,[object Object],[object Object],[object Object],[object Object]
Cumulative versus Straight Voting ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cumulative vs. Straight Voting: Example ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Proxy Voting ,[object Object],[object Object],[object Object],[object Object]
Dividends ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Classes of Shares ,[object Object],[object Object],[object Object],[object Object]
15.2 Corporate Long-Term Debt: The Basics ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Interest versus Dividends ,[object Object],[object Object],[object Object],[object Object],[object Object]
Is It Debt or Equity? ,[object Object],[object Object],[object Object],[object Object]
Basic Features of Long-Term Debt ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Different Types of Debt ,[object Object],[object Object],[object Object]
Repayment ,[object Object],[object Object],[object Object]
Seniority ,[object Object],[object Object],[object Object]
Security  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Indenture ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
15.3 Preferred Shares ,[object Object],[object Object],[object Object],[object Object],[object Object]
Is Preferred Stock Really Debt? ,[object Object],[object Object],[object Object],[object Object],[object Object]
The Preferred Shares and Taxes ,[object Object],[object Object],[object Object],[object Object],[object Object]
The Preferred Shares and Taxes (continued) ,[object Object],[object Object]
15.4 Patterns of Long-Term Financing ,[object Object],[object Object],[object Object],[object Object],[object Object]
The Long-Term Financial Gap Sources of Cash Flow (100%) Internal cash flow (retained earnings plus depreciation) 68.3% Long-term debt and equity 31.7% Uses of Cash Flow (100%) Capital spending Net working capital plus other uses Internal cash flow External cash flow Financial deficit
15.5 Summary and Conclusions ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Review Questions # ,[object Object]
Assigned Questions # ,[object Object]

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Ch15 Intro Financing

  • 1. LONG-TERM FINANCING – AN INTRODUCTION Chapter 15 of the Textbook
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  • 32. The Long-Term Financial Gap Sources of Cash Flow (100%) Internal cash flow (retained earnings plus depreciation) 68.3% Long-term debt and equity 31.7% Uses of Cash Flow (100%) Capital spending Net working capital plus other uses Internal cash flow External cash flow Financial deficit
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