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Debt Financing, Firm Value, and the Cost...

Chaplinsky, Susan,...

Technical Note

Debt Financing, Firm Value, and the Cost of Capital

Chaplinsky, Susan; Harris, Robert S.

F-1166 | Published March 31, 1997 | 21 pages Technical Note

Collection: Darden School of Business

Product Details

This note is suitable for an introductory MBA course in corporate finance. It explores how managers determine the proper amount of debt financing to use to fund a firm's operations. It examines the fundamental differences between debt financing and equity financing and the factors that drive the choice between them.

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