Capital structure choice in textbooks usually revolves around debt versus equity. In reality, there are several shades

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Capital structure choice in textbooks usually revolves around debt versus equity. In reality, there are several shades of grey in between. For example, subordinated debt can often be a useful source of capital for many firms. The following website (bctechnology.com/connector/scripts/experts/subdebt.cfm) lists the benefits of including subordinated debt in a firm’s capital structure. What types of firms would find this financing attractive?

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Fundamentals of Corporate Finance

ISBN: 978-0071051606

8th Canadian Edition

Authors: Stephen A. Ross, Randolph W. Westerfield

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