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Hi sir.sorry to bother you again.there is question in sep/Dec 2020 spine and co.where we have to decide which source of finance (equity/debt) should the company select for expansion on financial grounds.
Sir it is obvious that to choose cheaper one. Sir I have not found any study material in book specially choosing debt or equity for expansion
I shall be thankful to you if reffer me any study material or your specific lecture about this ( which source of finance should be selected for expansion)The fundamental objective of the financial manager is to keep shareholders happy by increasing the market value of their shareholding.
If ever you are asked whether something is worthwhile on financial grounds, then it means looking at the effect it has on the share price.
How we calculate the value of the shares depends on the information given in the question and is covered in several of the lectures. (The lectures are a complete course and are supposed to be watched in order rather than picking out individual ones, but there are two specific chapters on the valuation of securities.)
Thanks John.really you have saved much time.unfortunately I come to know very late about opentuition.as I was taking lectures paid one from somewhere else but believe me they are not even close to you once I watched few lectures of yours.
Thanks so much John again
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