Describe some ways other than an IPO thatcompanies can use to raise funds from the capitalmarkets.

Q: Investors and creditors use many different kinds of information before supplying capital to…

A: Users of financial information: People who rely on accounting information to make best decisions or…

Q: For a firm that has adequate access to capital markets, is it more reasonable toassume reinvestment…

A: The net present value assumes the reinvestment to happen at the weighted average cost of capital…

Q: Which of the following statements support reasons that companies make investments? Select all that…

A: Introduction:- Companies make investment for getting income from non operating activities.…

Q: h of the following statements correctly describes the nature of indirect financing as discussed in…

A: Indirect source of financing which is not done directly between two parties but direct financing…

Q: Explain any company (either local or international) that used venture capital as a source of…

A: Venture capital is a kind of investment strategy i.e. a source of capital funding wherein well off…

Q: All of the following are sustainable methods businesses can use to raise capital (funding) except…

A: Money is an important source of finance for the business. It can be arranged from various sources…

Q: Which market allows corporations and governments to raise funds by issuing shares of stock and bonds…

A: The primary market is also known as the new issues market. It deals with new security is being…

Q: Give an example of three financial intermediaries and explain how they act as a bridge between small…

A: The financial intermediaries are the individuals or institutions who deal in financial transactions…

Q: Excluding Venture Capital, what are the sources of equity funding from external sources. Please list…

A: Equity funding is the way to raise capital by selling company’s shares to the investors. In this…

Q: Compare raising cash funds in the capital market (selling new shares of stock) versus the bond…

A: Cash can be raised by the firm for multiple purpose such as expansion project, investment in to an…

Q: Which of the following is an example of a capital market instrument?     Money market mutual funds.…

A: Capital markets are where savings and investments are routed between providers (people or…

Q: Describe stocks and bonds and compare their advantages/disadvantages as a company's two major…

A: Stock: A stock can be a common sentence used to describe any company's proprietorship certificates.…

Q: A company’s sources of long-term funds include bonds, preferred stock and common stock. Identify…

A: Long term financing is required to fund projects with more than one year life. The funds used in…

Q: Given that institutional investors such as insurance companies, mutual funds, and pension funds are…

A: An initial public offering (IPO) is the process of raising capital from public investors or offering…

Q: Which of the following can be described as involving direct finance? A. People buy shares in a…

A: Direct finance does not involve any intermediate party or a third party. There is a direct…

Q: What is the purpose of an initial public offering (IPO)?

A: Initial Public Offering (IPO) is the process of selling the shares of a private company to the…

Q: Several market participants interact in developed markets to organize the exchange of funds from…

A: Description 1: Based on the description, it is classified as investment banks. Investment banks help…

Q: Which of the following can be described as involving direct finance? O A. People buy shares in a…

A: Borrowers borrow funds directly from the financial market without the need of a third-party service…

Q: ._______ Funding that comes from the sale of stock

A: Issue of stock or shares is one of the important source of finance being used by the business.…

Q: capital marke

A: common stock and corporate bonds are traded in capital market.  capital market is a place where…

Q: Which of the following statements best describes how a corporation determines its cost of capital?…

A: Cost of Capital is the rate of return the firm expects to earn from its investment in order to…

Q: What is meant by “going private”? What are someadvantages and disadvantages? What role doprivate…

A: Going private means when a particular group or a firm of private equity acquires the stake in the…

Q: Which of the following assist companies in raising capital, advise firms on major transactions such…

A: Investment Banks are banks or Institutions that provide various services related to finance to the…

Q: The idea of determining the WACC is to identify the relevant cost of utilizing funds provided by…

A: WACC is an abbreviation for weighted average cost of capital. WACC is computed to evaluate various…

Q: Discuss the key distinction between using cash and using stock for financing mergers.

A: Merger is an agreement which binds the two existing companies into a one new company. There are…

Q: Explain public offering in the Indian context and bring out the pros and cons of raising cap

A: Introduction : In simple words, public offering refers to the process under which an entity raises…

Q: Briefly explain the income tax advantage of raising capitalby issuing bonds rather than by selling…

A: The most important difference between bonds and the capital stock is the difference in the tax…

Q: In financing their operations, corporations have the options of raising capital by issuing stock or…

A: corporations have the option of raising the capital by issuing  - stocks (equity capital) - debt…

Q: Venture Capital Funds

A: Venture capital is a type of equity financing which gives entrepreneurs or any other companies the…

Q: how would participants interact to facilitate capital market activities?

A: Capital market is the market that deals in financial assets,  which have a longer or indefinite…

Q: it is mandatory to issue prospectus when raising funds through private equity?

A: Prospectus is a formal document that is required to be filed with the securities and exchange…

Q: Which of the statements are true Select one: a. Short term investment decisions are called working…

A: Short term investment decisions are the decisions related to day to day working

Q: Which of the following sources of entrepreneurial financing are available to ventures that have…

A: Source of finance means from where the business raise finance for its operations. Business can…

Q: What roles are played by an investment bank and its brokeragefirm during an IPO?

A: Investment banks provide various types of services to its clients like underwriting services,…

Q: Which of the following statements correctly describes the nature of direct financing as discussed in…

A: Direct financing is where funds are raised from investor through issue of fresh equity shares…

Q: Secondary Market can be best described in which of the following statement? a. It is a market for an…

A: Stock market there are buying and selling of securities are done depending on demand and supply of…

Q: What are some of the reasons why investors post IPOs into the primary markets?

A: An initial public offering occurs when a private firm sells its first shares of stock to the general…

Q: Your corporation needs additional capital to fund an expansion. Discuss the advantages and…

A: The answer is as fallows

Q: Provide the steps in investing funds in the capital markets through the following securities: 1.…

A: Capital markets The capital market is referred to as the place where investments and savings are…

Q: Explain briefly how the stock markets work and assess their usefulness to business as a source of…

A: A stock market is  the place where the buyer and sellers gather together to buy and sell the…