2.2 22Firms traditionally make use of financial markets to raise either debt or equityfunding. Modern financial innovation has meant the rapid increase in financingoptions available to start up and smaller (SMME) firms.Required:Assuming a start- up or SMME, provide a breakdown of alternative sources ofcapital that might be available to a start-up / SMME (outside of a traditional shareor bond issue on the stock market).

2.2 22Firms traditionally make use of financial markets to raise either debt or equityfunding. Modern financial innovation has meant the rapid increase in financingoptions available to start up and smaller (SMME) firms.Required:Assuming a start- up or SMME, provide a breakdown of alternative sources ofcapital that might be available to a start-up / SMME (outside of a traditional shareor bond issue on the stock market).

Fundamentals of Financial Management (MindTap Course List)

14th Edition

ISBN:9781285867977

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter8: Risk And Rates Of Return

Section: Chapter Questions

Problem 8TCL

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Hi! I'm having difficulty comparing the choices between raising a large amount of cash in the capitaal market verses the bond market. I have to make a decision as to what is best and why, all while considering ethical implications of financial reporting and how it relates to acquiring additional investors and accessing markets for additional capital. Consider the impact on the following on your choice: The company’s existing capital structure The company’s current market capitalization The company’s weighted average cost of capital The company’s degree of operating, financial and combined leverage
This allows firm to issue public equity very quickly and often at lower costs as long as they are pre-authorized to do so SEO Shelf registration Private placement Securitization Syndicated loans Project financing
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