Explain four (4) methods of raising equity finance that can be used by a company to fund
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Question:
- Explain four (4) methods of raising equity finance that can be used by a company to fund its branch expansion.
- Explain why the cost of equity tends to be greater than the cost of debt.
- Briefly explain why a company may prefer to fund investment projects by the use of retained profits rather than by the issue of new equity shares.
- Discuss the factors to be considered by the company in choosing to raise funds via a rights issue.
Related Book For
Entrepreneurial Finance
ISBN: 978-0538478151
4th edition
Authors: J . chris leach, Ronald w. melicher
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