International Finance
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:
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Common stock equity
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Preferred stock equity
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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):
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Default risk
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Inflation
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Interest rate risk
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Stock and market volatility
