Debt issuance vs. Traditional financing as working capital sources: colvanes s.a. (envía) case

Abstract

Capital Structure has been a subject of great controversy at entrepreneurial level given the large number of definitions and points of view regarding the subject. In like manner, to find an optimal distribution for debt and heritage accounts becomes a sensitive task whenever it comes to choose a type of debt that will be used to diversify the proportion, likewise to choose the projects to be developed in order to spend such resources. The financing alternatives through the debt issuance and traditional debt are valuable tools whenever it comes to maximize the value of a company optimizing its capital structure and to determine the one generating better results towards its integral valuing.