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The Financing Of The Firm By Bonds And Its Cost

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Author Info
Assoc. Prof. Ph.D Dorel Berceanu
Assoc. Prof. Ph.D Costel Ionascu (Faculty of Economics and Business Administration University of Craiova, Romania)

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Abstract

Through this present paper there are presented a few aspects concerning one of the instruments of medium and long term debt which can be used by companies, and that is the bonds credit. So that, after a short presentation of the framework in which this debt method can be used, there are presented the conditions that have to be fulfilled so that a company could have access on the bonds market. A large space is occupied by the parameters of the issue of bonds. Though the cost of debt capital may seem at first glance simple, even trivial to determinate, there are conceptual problems in the calculation. In our work we are concerned with finding the cost of bonds credit.

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Publisher Info
Article provided by University of Craiova, Faculty of Economics and Business Administration in its journal Revista Tinerior Economisti (The Young Economists Journal).

Volume (Year): 1 (2009)
Issue (Month): 12 (April)
Pages: 164-169
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Handle: RePEc:aio:rteyej:v:1:y:2009:i:12:p:164-169

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Related research
Keywords: bonds; credit; cost; firm; capital market;

Find related papers by JEL classification:
G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Investment Policy
G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Capital and Ownership Structure

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This page was last updated on 2009-11-22.


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