- The attitude of the creditors: The prestigious enterprises, credit rating high will easily get the loan approved creditors over.
- market interest rates: If the market interest rate in future tends to increase, enterprises tend to issue bonds more than at the present time.
- Flexibility in terms of finance: The majority of financial managers set goals that are always in a state of readiness may raise funds necessary to support operations even right in the bad conditions. Therefore they want to maintain a debt capacity at certain levels.
In short, to improve their financial autonomy, the company needs to reduce risk in raising capital from debt by identifying a optimal capital structure, using debt and equity justified.
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