Answered: Firms raise capital by: Select one: a.…

Firms raise capital by: Select one: a. Selling stock (equity) b. Issuing bonds or taking out loans (debt) c. Using retained earnings (a form of equity) d. All points mentioned

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter29: Interest, Rent, And Profit

Section: Chapter Questions

Problem 3QP

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Question

Firms raise capital by:

Select one:

a. Selling stock (equity)

b. Issuing bonds or taking out loans (debt)

c. Using retained earnings (a form of equity)

d. All points mentioned

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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