Finance

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700–800 words
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Weekly tasks or assignments (Individual or Group Projects) will be due by Monday and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus. NOTE: All submission-posting times are based on midnight Central Time.

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 in international capital markets. In addition, explain how these risks may influence a company's international weighted average cost of capital (WACC):

  • Default risk
  • Inflation
  • Interest rate risk
  • Stock and market volatility  

 

    • 9 years ago
    • 15
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