Contents
Introduction 3
The types of long term financing are:- 3
Shares 3
Debentures 3
Term loans 3
Initial Public Offer 3
Securitization 3
Government subsidies 4
Venture capital 4
Private equity 4
Importance of long term finance 4
Retention of equity 4
Low Interest 4
Growth 4
Stability 4
Critical evaluation 4
Factors determining the source of finance to be chosen 5
Company listed with MSM 6
AL ANWAR 6
Conclusion 7
Works Cited 8
Description
This report is based on the following requirement -
Financial requirements of business differ from firm to firm and the nature of the requirements may be long term and short-term financial requirements based on terms or period of financial requirement, Sources of finance are the means through which firms mobilize various terms of finance. Sources of finance state how companies are mobilizing finance for their requirements.
Companies either existing or new, need finance to meet the long-term and short-term requirements that include purchasing of fixed assets, construction of office building, purchase of raw materials and day-to-day expenses.
With reference to academic literature, write a report analysing the issues to be taken into account while managing Long-term sources of finance. The report should include the following:
• Introduction covering the objectives and importance of Long-Term Sources of Finance including its elements, nature & purpose.
• Critical discussion on existing academic literature which shows how decisions about Long-term sources of finance affect the company's growth/profitability.
• Analysis of factors that have to be taken into account while managing different elements of Long-Term sources of Finance.
• Table identifying the Long-term sources of Finance of any Five MSM listed companies from different sectors along with brief comments.
• Appropriate conclusion.