Subject category:
Finance, Accounting and Control
Published by:
Babson College
Version: November 2001
Length: 4 pages
Data source: Published sources
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Abstract
This is the second of a two-case series (BAB026 and BAB027) and raises the issue of what would happen to the value of the firm if management issued debt after the initial public offering. It provides an opportunity to discuss weighted average cost of capital, the cost of debt financing, firm value in the presence of debt, and how debt ratings are assigned.
Subject category:
Finance, Accounting and Control
Published by:
Babson College
Version: November 2001
Length: 13 pages
Data source: Published sources
About
Abstract
This is the second of a two-case series (BAB026 and BAB027) and raises the issue of what would happen to the value of the firm if management issued debt after the initial public offering. It provides an opportunity to discuss weighted average cost of capital, the cost of debt financing, firm value in the presence of debt, and how debt ratings are assigned.
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Subject category:
Finance, Accounting and Control
Published by:
Babson College
Version: November 2001
Length: 13 pages
Data source: Published sources