Abstract:

To select the best form of finance has been on of the major problems in corporation's financial management for many years. This paper compares various forms of finance to their different influence on earnings of per-share and profit of stockholder's equity; then decides the best selection of corporation's finance. This paper thinks that corporation's finance policy depends on several factors such as interest rate, price of allotment of shares, contribution of corporation's former investment to present profit, and profit of new investment.

Key words: corporation, form of finance, earnings of per-share, profit of new investment