Business > Research Paper > Long-Term Debt Research Paper Starter - eNotes (All)

Long-Term Debt Research Paper Starter - eNotes

Document Content and Description Below

rows Navigate Study Guide Long-Term Debt This article will explain longterm debt. The overview provides an introduction to the most common types of longterm debt and longterm debt lenders. Th... is article will also describe how investors and creditors can determine a company's longterm debt by using mathematical formulas and by examining a company's balance sheet. In addition, the reasons why creditors and investors pay close attention to a company's longterm debt obligations are explained, as are the reasons why companies choose to use longterm debt to pay for their business growth objectives. Also, explanations of corporate financial analyses in which longterm debt is an important issue, such as identifying profitable borrowing, reading balance sheets and comparing the financial positions of various companies based on their assets and debt obligations are included to help illustrate how longterm debt factors into common corporate finance considerations. Keywords Bonds; Debentures; Debt; Equity; Loan; Inflation; Interest Rate; Investment; Term Finance: LongTerm Debt Overview There are many ways that companies finance, or pay for, their costs of doing business. Successful businesses earn profits that are reinvested back into the company to pay for research and development or other expansion efforts to further grow the business. However, there are many instances in which a company's earnings are not sufficient to cover its costs and growth objectives. For instance, young companies or companies that are struggling to stay afloat financially may not generate enough profit to cover all of their internal costs as well as the costs of growing and expanding. Even strong, stable companies may need to make significant purchases — such as equipment, building space or even the acquisition of another company — to continue to grow and remain competitive, and these costs may exceed the amount of liquid assets a company has on hand. And even after years of successful growth, a company [Show More]

Last updated: 2 years ago

Preview 1 out of 20 pages

Buy Now

Instant download

We Accept: