international finance 2

by

APA Format plus references ……….    700 to 800 words

Companies seek the lowest average rate of financing costs to capitalize the business. Common sources of financing are as follows:

  • Common stock equity

  • Preferred stock equity

  • Bond debt

    Explain how the following risks may affect these 3 sources of financing and the impact overall on weighted average cost of capital (WACC):

  • Default risk

  • Inflation

  • Interest rate risk

  • Stock and market volatility