ABFM: Concepts and Practice · Part B: Advanced Financial Management

Chapter 7: Sources of finance

Where a company’s money comes from and what each source costs: equity, preference, debentures, loans and ECBs, and the right mix.

Buyers of the e-book, or of the print copy, which includes it, read the whole chapter. Everyone can read the free sample, pages 1 to 24 of the e-book.

In this chapter

• 7.1Financial strategy and the sourcesp. 87
• 7.2Equity and internal accrualsp. 88
• 7.3Preference capital and debenturesp. 89
• 7.4Term loans, ECBs and other borrowingp. 90
• 7.5The cost of capital and the mixp. 91
• Exam traps and quick checksp. 92
• Practice: 16 questions in three roundsp. 93
• Answers, with every wrong option explainedp. 95
• Make it stickp. 97
• Chapter 7 on one pagep. 98

Corrections and updates

None for this chapter so far. Every correction to the book, and any rule that changes after its date, is listed on the errata page.