Raising Long-term Capital

Abstract

Many large expanding companies are unable to finance the purchase of new premises and equipment which they require, from the internally generated cash flow which accrues to the company. In such circumstances the companies will very probably raise further long-term capital from the public.¹ This case study examines how three companies, which operate in different industries, have raised their long-term finance. The case study has been designed so that one can obtain practice in choosing the type of capital a company could raise, and the terms which should be offered to the investing public.