Hanna Lee

Fearless Idea 14: Reduce the Cost of Debt

Public companies — owned by shareholders with stock — have the advantage of being able to easily tap into financial markets when they need money, either by selling more equity as stock or often by issuing portions of their debt as bonds. Private companies — owned by the company’s founders, a management group or private investors such as a private equity group — can also sell off their debt as public bonds. But for them, the cost is much higher. New research from Smith School professor Hanna Lee has implications for firms weighing different ownership types and how that will impact the cost of capital. Read more...

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Robert H. Smith School of Business
Map of Robert H. Smith School of Business
University of Maryland
Robert H. Smith School of Business
Van Munching Hall
College Park MD 20742