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Is the investment decision more important than the financing decision?
Wiki User
∙ 13y ago
You have to look at the situation in detail.
For things that depreciate like cars or electronics, there is little investment value. But the financing can be very painful if done wrong.
Whereas with a mutual fund or savings plan, there is no financing, but the you need to know about how much your going to receive from that investment.
Now in the case of a house, things get tricky. Most people don't know, but if you take out a 100K mortgage at a low interest rate (6.5 %) over 30 years you will still end up paying over 350K back to the bank by the time it is all over! (Including escrow). For that reason, you need to be sure that you going to get the that much value out the investment when you start to look at the financing.
Wiki User
∙ 13y ago
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What is tax equity financing?
Tax equity financing has been a reliable source of funding renewable energy projects for the past decade. Tax equity financing is renewable energy financing structure that permits investors to efficiently and economically utilize federal tax benefits generated by the investment available in renewable energy projects. See: w_wTaxEquityFinancing_com for more complete answer.
What is the difference between interest only financing and conventional financing?
The difference between interest only financing and conventional financing is that you are able to make money without any investment on an interest only account only by depositing a maximum amount in an account which you leave for a set period of time where interest will accumulate. Conventional banking is used for more day to day banking purposes.
Which is more costly long term financing or short term financing?
Both can be good and bad. This question is too broad. Overall short term financing is more expensive however it can be a lifeline and save a business. Do some more search online for business credit and business financing.
Which is an advantage of equity financing over debt financing?
One advantage of equity financing over debt financing is that it's possible to raise more money than a loan can usually provide.
What are the three major functions of the financial manager How are they related?
a).What are the three major functions of the financial manager?How are they related? Ans: Introduction Financial Management is the efficient and effective planning and controlling of financial resources so as to maximize profitability and ensuring liquidity for an individual (called Personal Finance) , government (called public finance) and for profit and non-profit organization/firm (called corporate or managerial finance).Generally, it involves balancing risks and profitability. The decision function of financial management can be divided into the following three major areas: 1):Investment Decision: The most important decision.It begins with the firm determining the total amount of assets needed to be held by the firm.There are two types of investment decision: a):Capital Investment Decision: Involves large sums of money.The impact is critical.Example acquire a new machine or to set up a new plant. b):Working Capital Investment Decision: A more routine or schedule form of decision.Examples are determination of the amount of inventories , cash and account receivables to hold within a certain period. 2):Financing Decision: The second major decision . After deciding on what assets to buy or what securities to invest in , the financial manager would have to decide on how to finance these assets. Sources of finance -- 2 sources ; Borrowings and / or Capital. 3):Assets Management Decision: The third and the last decision. Once the assets have been acquired and appropriate financing provided, these assets must be managed efficiently . By managing currents assets effectively and efficiently, the company can increase its returns and minimizes its risk of illiquidity. Conclusion: Financial Management has become very complex over the last few decades. The area of financial has emerged into a unique area separate from either Economics or accounting. It has since developed into a very decision oriented field where internal decisions are made in context of the external financial environment with a goal of maximized shareholder's wealth.
Where can I find information on how to get financing for a business acquisition?
Here's a company that will provide financing for a business acquisition: http://www.globaleasing.com/financing-acquisition.html A local bank can help you with financing options for a business investment. Contact a loan officer for more information.
Let Someone Else Decide Where To Invest Money?
Picking an investment company to put your money in is a very important decision. You are putting not only your money into an investment, but your faith in the investment as well. Consult with an investment broker before you make any decision on where to put money. They will show you the past investments of the company and the rise and fall of the stock amounts. Find a company with a good history and one that has a bright future so that you do not lose more money than you invest.
Where can I learn more at financing for a mortgage?
You are very wise to do some research on this important subject that will be the more important purchase you will ever make. Go to www.bankrate.com.
What is tax equity financing?
Tax equity financing has been a reliable source of funding renewable energy projects for the past decade. Tax equity financing is renewable energy financing structure that permits investors to efficiently and economically utilize federal tax benefits generated by the investment available in renewable energy projects. See: w_wTaxEquityFinancing_com for more complete answer.
Why investment is important in an economy?
Allow businesses to raise capital to sustain and grow. The more businesses there are, the more competition, the more competition, the more innovation and price efficiency (as companies compete for customers' money).
What is the effect of the source of finance in public and private institution?
The source of finance has a bearing on the costs incurred by that company. As you know, most institutions have three potential sources of funds; Debt Financing, Equity Financing and Grants or Subsidies from Government. The later of the three is quite rare and so is normally ignored. In making a choice between debt and equity companies must weigh the costs against the benefits. Equity is generally considered to be cheaper than debt financing, for a number of reasons, including the timing of the cash outflows to the source of funds. The DuPont equation however, brings to light the many benefits of leveraging (i.e. the use of debt financing) to companies and the equity shareholders. In brief, the DuPont Equation points out that an entrepreneur (or shareholder) can earn excess returns by leveraging his investment portfolio, provided that the return earned from that portfolio is greater than the cost of the debt used. The excess return is the portion of the return earned on borrowed dollars, that isn't paid back to the lender as interest. That's all I can give you for now, but I encourage you to read more. There is quite a substantial amount of literature on this subject given that it is one of the three most important decisions in Finance. These are, the investment decision, the dividend decision and (your question) the financing decision.
What is the difference between interest only financing and conventional financing?
The difference between interest only financing and conventional financing is that you are able to make money without any investment on an interest only account only by depositing a maximum amount in an account which you leave for a set period of time where interest will accumulate. Conventional banking is used for more day to day banking purposes.
Financing Bariatric Surgery An Investment In Your Future?
Bariatric surgery can cost anywhere from $20,000 to $35,000, and not all insurance companies will cover the surgery. Most surgeons offer a financing option with a low interest rate. Although this is a lot of money to most people, it is an investment in your future and your health. Obesity can lead to heart disease, diabetes and other conditions. These can be expensive to treat, even if you have insurance. While it's unfair, patients often earn more money after bariatric surgery than they did before the surgery. If you are considering financing bariatric surgery, think of it as an investment in your physical and emotional health.
Why is tourism so important to Malaysia?
Malaysia is boosting its tourism basically because to invite more investment for the upliftment of the country. If there are many more tourists, it can open doors to more business and more investment from outside the country.
What is office financing, and where can I find out more?
Office financing is when you finance something for your office. It is a way to get more money, and to help out your business. You can go to your bank to learn more about office financing.
Financing / Credit / LoanWe offer financial loans and investment loans for all individuals who have special business needs. For more information contact us at via eSubmit your inquiryThank you?
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How you can combine liability structure and current assets decision?
The level of current assets and method of financing those assets are interdependent.A conservative policy of "high" level of current assets allows a more aggressive method of financing current assets.A conservation method of financing ( all- equity) allows an aggressive policy of "low" levels of current assets.
