A firm may retire bonds by purchasing the debt in the secondary markets.​

If a firm must issue subordinated debentures instead of equipment trust certificates, the marginal cost of capital may rise even though the optimal capital structure is maintained.

A firm may retire bonds by purchasing the debt in the secondary markets.​

A constant payout ratio implies dividends vary with earnings.​

Even if the interest rate is only 1%, a lump sum of $1,000 today is preferred to $100 a year for 10 years.​

The DuPont system combines liquidity and earnings.​

The DuPont system combines liquidity and earnings.​

If accounts receivable are 20% of sales and the level of sales doubles, the percent of sales says that accounts receivable will be 40% of sales.​

The more rapidly inventory turns over, the more finance the firm needs. /span>​

Issuing new stock or borrowing from a bank is a cash inflow. ​