BUS 082 Lecture Notes - Lecture 32: Insider Trading, Retained Earnings
23 Sep 2020
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What are the organization"s long term goals and objectives. What funds do we need to achieve the firm"s long term goals and objectives. What sources of long-term funding are available, and which will best fit our needs. Debt financing: the funds raised through various forms of borrowing the mst be repaid. ;equity financing: the funds raised from within the firm from operations or through the sale of ownership in the firm (such as stock) Stock sales: the sale of ownership in the firm. Retained earnings; funds raised by the firm through profit earned on operations. Repayment: principal must be repaid on a specified date. Yearly obligations: by contract, interest must be paid. Influence on management: common stockholders have voting rights. Repayment: equity does not need to be repaid. Yearly obligations: no legal liability to pay dividends. Tax benefits: dividends are paid from after tax income and are not deductible.
