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| renting assets for a specified period of time |
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| the rate of interest typically charged on loans to the most creditworthy firms |
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| Provides additional time for the firm to generate the necessary cash to cover its payment. |
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| the selling of stock to the public |
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| bonds that are backed by collateral |
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| amount of debt vs. equity financing |
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| provides the issuing firm with the right to repurchase bonds before maturity |
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| a firms decision regarding how much of its earnings should be retained vs. distributed to shareholders |
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| fees paid to investment banks for selling securities by the firm |
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| a security that represent partial ownership of a firm |
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Definition
| represents the first issue of stock to the public by a firm |
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| a failing firm will provide its provide its creditors with a protion of what they are owed |
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| legal document that explains the firm's obligations to its bondholders |
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| the selling of securities to one or a few investors |
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Definition
| firms that need to borrow may need to pledge their assets as _________ to back their loan |
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| a short term debt security normally issued by firms in good financial condition |
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| bond is the amount of money that bondholders receive when the bond matures |
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| restrictions imposed by creditors on specific financial policies of the firm |
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