What are three forms of capital firms use to finance their projects?Group of answer choices A.Coupons,...
What are three forms of capital firms use to finance their projects?Group of answer choices
A.Coupons, Dividends and Interest
B.Plant, Equipment and Maintenance.
C.Debt, Preferred Stock and Common Equity.
D.Accounts payable, Accruals and Depreciation
What is the formula for the component cost of preferred stock?
Rp=Dp/Pp
Rp=Dp/Pp+g
Rp=YTM+risk Premium
Homework Answers
1) Option 'C' is correct
Three forms of capital, firms use to finance the project are
Debt , Preferred stock , Common stock.
2) Option '1' is correct
Cost of preferred stock (Rp) = Dp / Pp
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What are three forms of capital firms use to finance their
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foreseeable future. The market is currently demanding a 6 percent
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