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Debt Capital Markets
Capital structure planning begins with the debt-to-equity choice and proceeds to
examine debt and equity structuring opportunities including the fixed/floating
choice, the choice to issue convertibles or common equity. On the debt side, the
framework proceeds to consider the maturity choice and the currency sourcing choice.
Capital Structure Planning Considerations
- What is likelihood that business will grow?
- What is likelihood that business will shrink?
- What are likely future needs for capital?
- What is the financial distress risk?
- What is the firm's optimal capital structure?
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