Companies seek the lowest average rate of financing costs to capitalize the business. Common sources of financing
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Question:
Companies seek the lowest average rate of financing costs to capitalize the business. Common sources of financing are as follows:
Common stock equity Preferred stock equity Bond debt Explain how the following risks may affect these 3 sources of financing in international capital markets. In addition, explain how these risks may influence a company's international weighted average cost of capital (WACC):
Default risk Inflation Interest rate risk Stock and market volatility
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