._______ Funding that comes from the sale of stock
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._______ Funding that comes from the sale of stock
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- The payments made to a fund's shareholders that result from the sale of securities in the fund's portfolio are called: Question 4 options: income dividends. capital gain distributions.The idea of determining the WACC is to identify the relevant cost of utilizing funds provided by different sources. TRUE OR FALSE. Flotation costs can be represented by the amount of costs a company pays to raise capital through authorizing sale of company ownership. TRUE OR FALSE Issuing new preferred shares should be the firm's last resort of raising new funds. TRUE OR FALSEDescribe stocks and bonds and compare their advantages/disadvantages as a company's two major funding channels. (Explain clearly and in-depth.)
- A company’s sources of long-term funds include bonds, preferred stock and common stock. Identify some financing risks associated with these sources and explain how these risks affect the return expected from investments financed by these sources.Explains how the Capital Asset Pricing Model (CAPM) helps to determine the performance of the company's shares.What is the impact on stockholders equity when a company uses debt financing as a source of funding?
- Your corporation needs additional capital to fund an expansion. Discuss the advantages and disadvantages of raising capital through the issuance of stock. Would debt be a better option? Why or why not?If restricted stock shares are present in the capital structure, what do you use as the assumed cash proceeds?Which of the following is NOT a capital component when calculating the weighted average cost of capital (WACC) for use in capital budgeting? a. Accounts payable. b. Preferred stock. c. Common stock raised by new issues. d. Long-term debt. e. Common stock "raised" by reinvesting earnings.
