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Q: What is the importance of financing decision in a firm?
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Distinguish between a firm's capital budgeting decision and financing decision?

~The decision about which assets to buy is termed the capital buygeting or inverstment decision. The cesision about how to raise money is the financing decision.


What are the basic financial decision in an organization?

The basic financial decisions include long term investment decisions, financing decisions and dividend decisions. Investment Decision relates to the selection of assets in which funds will be invested by a firm. These decisions are of two types Capital Budgeting Decisions and Working Capital Decisions. Financing Decision is broadly concerned with the asset-mix or the composition of the assets of a firm. The concern of the financing decision is with the financing-mix or capital structure or leverage. Dividend Policy Decision isrelated to the dividend policy.


A firm's opportunity costs of using resources provided by the firm's owners are called what?

equity financing


What is the definition of 'financial management'?

One of the three areas of the discipline of finance. It deals with the operation of the firm (both the investment decision and the financing decision) from the firm's point of view.ITs called financial mamagement or corporate finance


Where would one find financing in Chicago?

The Chicago Tribune has help for financing or Robert Half has a financing and account website. His firm is one of the largest recruitment firms. Another option is to apply for a financing internship.


What are the services for a firm provided by a leasing company?

Financial Products and Services Equipment Financing Receivables Financing Inventory Financing Finance Lease Operating Lease Money Market


What are the three main decision areas in business finance?

The three main decision areas in business finance are:Investment decision,Financing decision and Dividend decision


The most expensive source of financing for a firm is?

common stock holder equity


What are the channels through which financing choices can affect firm value?

dont knw.


What effect does leasing have on a firm's capital structure?

Leasing is a substitute for debt financing, so leasing increases a firm's financial leverage.


What can be used for debt financing?

Debt financing can be achieved through selling bills, bonds or notes to individuals or institutions. Individuals or institutions thus lend money to a firm. They are investors. The firm is obliged to repay them the principal and the interest on that debt.


Explain why judging the efficiency of financial decision requires the existence of a goal?

The goal of the firm is wealth maximization so efficient financial management requires the existence of goal or objective. The goal of the firm is earning market per share but we can know about best company by finding it's market share price. It is a reflection of the firm's investment, financing, and asset management decisions.