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What three forms does Equity financing come through?
selling stock,issuing bonds investment
A company that wanted to increase its capital through equity financing would most likely get involved in what?
1. A company wants to increase capital using equity financing will involve in issuing share capital to public for subscription.
A company that sells shares in the stock market is involved in which type of financing?
Equity financing
Issuing shares of stock in exchange for cash is an example of?
financing activity
The most expensive source of financing for a firm is?
common stock holder equity
When seeking long-term financing an advantage of issuing bonds over issuing common Stock is that stockholder control is not affected?
TRUE
When seeking long term financing an advantage of issuing bonds over issuing common stock is that stockholder control is not affected?
TRUE
The two primary sources of equity financing are?
1. Direct contributions by owners. corporations can raise equity capital by issuing new shares of stock and selling them to exitsting stockholdersr or to new investors. 2. retained Earnings: A firm's profits legally belong to its owners.
Match each type of financing with the method used to obtain it. Debt financing equity financing public financing?
Debt financting-taking a loan from a bank Equity financting-selling owership in the company public offering-selling shares of stock on the open market
What is the disadvantage of equity financing?
Selling stock gives the shareholders some controll over the company
Whats is the Journal entery for costs of issuing stock?
Debit Capital stock xx Credit Cash xx Generally you would offset costs of issuing common or preferred stock against the similar equity account.
What is meant by the term equity financing?
Equity Financing is the term used when a company sells off some of it's own stock in an effort to raise more money for whatever projects they might be working on.
