long term and short term financing - Long-Term and...

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Long-Term and Short-Term FinancingTerryn Scobey2/4/15FIN/200Jill Clements
Long-term financing is most likely going to be more expensive than short-term financingthis knowledge is based on the theory of the term structure of interest rates. Long-term financingis capital that is extended for a term more than a year. Long-term financing is often a form of aloan in investing and personal finance, usually with a payback period for more than a year. Agreat example is one that most people are familiar with and that is something like a 30 yearmortgage. Another form of long-term financing is equity, like when a company issues stock toraise capital. There are many purposes of long-term financing; finance fixed assets, to expand acompany, big scale construction projects, and provide capital for funding the operations. Long-term financing that might be provided to one business depends on the type of business, a sole

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Term
Fall
Professor
WILLIAMS
Tags
Finance, long term financing

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