Question: Why do companies use so many different types of instruments to raise capital? Why not just use debt and common stock?

Why do companies use so many different types of instruments to raise capital? Why not just use debt and common stock?

Step by Step Solution

★★★★★

3.39 Rating (161 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Both companies and investors have different preferenc... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

91-B-C-F-F-D (141).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!

Q:

Why are there so many different types of international organizations in the financial institutions sector?

Q:

Why do companies use job specialization? How can specialized jobs be modified to eliminate the boredom and low job satisfaction associated with them?

Q:

Why do companies use sequential prenumbering for documents such as checks, sales invoices, and purchase orders?

Q:

At lest 2 pgs in length, and specificallyand personally reflect on the prompt. Evaluate earnings management from a utilitarian perspective. Can earnings management be an ethical practice? Discuss why...

Q:

This assignment showcases your ability to understand and the multi-faceted nature of ethical dilemmas and how to apply appropriate decision-making in the real world. The critical assignment is two...

Q:

1. Calculate the total expenses per year for his family if he dies. If Deen Mukhamad Abdaghaniev dies, his family will have to pay a total of RM 31,710 per year in expenses. This includes his wife's...

Q:

NASPAA Competency 5 -"Ability to communicate and interact productively with a diverse and changing workforce and citizenry" with MPA Program Learning Objectives 5. ability to communicate and interact...

Q:

need answer for these questions 13, 17, 19, 20, and 23? PART 5 Business Valuations Chapter Business Valuations A valuation analyst should be able to explain and defend his or her valuation, including...

Q:

need answers for questions 13, 17, 19, 20, and 23? PART 5 Business Valuations Chapter Business Valuations A valuation analyst should be able to explain and defend his or her valuation, including both...

Q:

Hi, Please help me with responding to the discussion questions below because I'm having a hard time answering them myself. I have been up all night, and I'm unable to figure them out. I uploaded a...

Q:

Justify whether the series sigma(n=1, infinity) (-1)^n/n^2+1 converges absolutely or diverges.

Q:

Which of the following substances are acids in terms of the Arrhenius concept? Which are bases? Show the acid or base character by using chemical equations. a. P4O10 b. K2O c. N2H4 d. H2Se

Q:

Loss from a lawsuit would be reported under which section of the multiple - step income statement? Select one: a . Cost of goods sold b . Operating expenses C . Administrative expenses d . Other...

Q:

Find the value at time 50 of the set of end-of-year cash flows shown, if the appropriate rate of return is 11 percent per year: a. $179,255 b. $1,255,000 c. $33,079,044 d. $6,106,191,094

Q:

Explain how the extended, or modified, DuPont equation can be used to reveal the basic determinants of ROE.

Q:

What is common size analysis?

Q:

What is a trend analysis, and what information does it provide?

Q:

The value of a new car is R224 000,00. It is estimated that the value of the car will decrease at the rate of 11% per year. Answer the following questions: a. Determine the exponential function that...

Q:

i don't understand this Table 1. The data in Table 1 represent a set of Anxiety Scores reported by a sample of adult male respondents who participated in a recent Anxiety Study in Adult Males....

Q:

You manage a $20.5 million portfolio, currently all invested in equities, and believe that the market is on the verge of a big but shortlived downturn. You would move your portfolio temporarily into...