Costs and Benefits of Raising Capital Through Different Sources

Download or read book Costs and Benefits of Raising Capital Through Different Sources written by Junaid Javaid and published by . This book was released on 2015-08-20 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: Master's Thesis from the year 2015 in the subject Business economics - Business Management, Corporate Governance, grade: B-, University of Bedfordshire, course: MBA, language: English, abstract: This theory into practice final project is written on the topic of 'Costs & Benefits for Raising Capital through Different Sources'. Major aim of this theory into practice report would be to let know readers about all of form funding sources (that would make possible for the companies in meeting their working capital needs). It has been understood that the method or process of acquiring capital through different sources is termed as Financing Decision. The Corporations are actively recruiting financial managers mainly for the successful execution of financial decision. Generally, there have been various sources of funds that could be utilised by companies for meeting their working capital needs. It has been observed that with the utilisation of funds from different sources not only made possible for the underlying firm to survive through difficult periods but would help it in expanding its operations as well. All of these sources are classified in to five main classes: Internal Financing, Security Financing, Lease Financing, Loan Financing and other sources. Internal financing intends on the approach of reinvesting of company's earning either for meeting working capital needs or for expanding company's operations. Security Financing is all about issuing of company's shares of different kinds. A company could source capital through loan financing which is determined as an agreement that it would repay principal amount it to the lender in a specified time along with monthly interest payments. Lease financing is actually an agreement between two parties under which one party is interested in using other party's asset for a specified period. Venture capital is considered as relatively new source of finance. From an investor point of view, it is most risky investment. In acco