Loose Leaf for Foundations of Financial Management Format: Loose-leaf
17th Edition
ISBN: 9781260464924
Author: BLOCK
Publisher: Mcgraw Hill Publishers
expand_more
expand_more
format_list_bulleted
Question
Chapter 15, Problem 8DQ
Summary Introduction
To explain: The sources of funds for raising capital through private placement.
Introduction:
Private placement funds:
It is a mechanism through which capital is raised by selling the shares of a company to select investors or institutions. The company does not sell its shares in the open market.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Describe some ways other than an IPO thatcompanies can use to raise funds from the capitalmarkets.
what is the firm's cash flow from financing?
The correct answer is (2539)
What are the sources of short-term funding available to large corporations? Differentiate these sources from those needed to raise funds for a long-term capital investment.
Chapter 15 Solutions
Loose Leaf for Foundations of Financial Management Format: Loose-leaf
Ch. 15 - Prob. 1DQCh. 15 - Prob. 2DQCh. 15 - Prob. 3DQCh. 15 - Prob. 4DQCh. 15 - Prob. 5DQCh. 15 - Prob. 6DQCh. 15 - Prob. 7DQCh. 15 - Prob. 8DQCh. 15 - Prob. 9DQCh. 15 - Prob. 10DQ
Ch. 15 - What is privatization? (LO15-5)Ch. 15 - Louisiana Timber Company currently has 5 million...Ch. 15 - The Hamilton Corporation Company has 4 million...Ch. 15 - American Health Systems currently has 6,400,000...Ch. 15 - Using the information in Problem 3, assume that...Ch. 15 - Jordan Broadcasting Company is going public at 50...Ch. 15 - Prob. 6PCh. 15 - Tiger Golf Supplies has 25 million in earnings...Ch. 15 - Prob. 8PCh. 15 - Walton and Company is the managing investment...Ch. 15 - Prob. 10PCh. 15 - Prob. 11PCh. 15 - Prob. 12PCh. 15 - Prob. 13PCh. 15 - Prob. 14PCh. 15 - Prob. 15PCh. 15 - Prob. 16PCh. 15 - Prob. 17PCh. 15 - Midland Corporation has a net income of 19...Ch. 15 - Prob. 19PCh. 15 - Prob. 20PCh. 15 - Prob. 21PCh. 15 - Prob. 22P
Knowledge Booster
Similar questions
- All of the following are sustainable methods businesses can use to raise capital (funding) except for ________. A. borrowing from lenders B. selling ownership shares C. profitable operations D. tax refundsarrow_forwardwhere is the 24100 for gail sabatini capital coming from? also where is the gail sabatini capital 842500?arrow_forward9. What are the differences between raising capital from a financial institution and raisingfinances directly from the market?arrow_forward
- Why might a large corporation want to raise long-term capital through a borrowing money from financial institutions rather than a public offering?arrow_forwardAll of the following are sustainable methods businesses can use to raise capital (funding) except for________.A. borrowing from lendersB. selling ownership sharesC. profitable operationsD. tax refundsarrow_forwardAll of the following are sustainable methods businesses can use to raise capital (funding) except for ________. borrowing from lenders selling ownership shares profitable operations tax refundsarrow_forward
- 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 FALSEarrow_forwardHow should the capital structure weights used to calculate the WACC be determined? Suppose a firm estimates its WACC to be 10%. Should the WACC be used to evaluate all of its potential projects, even if they vary in risk? If not, what might be “reasonable” costs of capital for average-, high-, and low-risk projects? If Congress increased the personal tax rate on interest, dividends, and capital gains but simultaneously reduced the rate on corporate income, what effect would this have on the average company’s capital structure? If a firm goes from zero debt to successively higher levels of debt, why would you expect its stock price to rise first, then hit a peak, and then begin to decline?arrow_forwardIdentify problems that occur when estimating the cost of capital fora privately held firm. What are some solutions to these problems?arrow_forward
- While determining which companies will receive capital, what information do investors and creditors needs?arrow_forwardWhat information do investors and creditors need when determining which companies will receive capital?arrow_forwardThe company wishes to mobilize short term funds through various sources, Which of the following is not an appropriate source for the company? Select one: A. Equity Shares B. Commercial Paper C. Treasury Bills D. Commercial Billsarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegeIntermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Intermediate Financial Management (MindTap Course...
Finance
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Cengage Learning