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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › considerations when raising debt
Dear John sir,
“Cash flow forecasts are central to financing decisions – e.g. ensuring that two sources of finance do not mature at the same time.”
sir equity doesn’t have an end time of maturity. so how does this sentence makes sense?
thanks so much!
Equity is only one source of finance. The statement is referring to debt finance which will mature in the future (and if there is more than one source of debt finance it makes sense to make sure that they mature at different times).