Conventional research on raising capital focuses on the two usual suspects that inhabit balance sheets: equity and debt. But as authors Alex Edmansand William Mannremind readers in a recent Wharton research paper, selling non-core assets also fills corporate coffers with cash.
"Financing Through Asset Sales" probes the choice to issue equity or sell non-core assets such as a division or a plant. As a means of raising cash, under what conditions are asset sales or equity issues likely to add more value? Edmans, a Wharton finance professor and a faculty research fellow at the National Bureau of Economic Research, and Mann, a Wharton PhD candidate, have an answer.
To read the original article: Equity, Debt or Assets? A New Lens for Looking at Raising Capital - Knowledge@Wharton
