EBK FUNDAMENTALS OF CORPORATE FINANCE
EBK FUNDAMENTALS OF CORPORATE FINANCE
4th Edition
ISBN: 8220103631754
Author: Harford
Publisher: PEARSON
Question
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Chapter 14, Problem 1CC
Summary Introduction

Equity financing:

Equity financing refers to a general method used by firms to raise capital for performing various activities. Firms raise funds by the issuance of common stock to investors at a definite price per share. The investors receive a proportion of ownership interest for the investment made by them in the firm.

A firm requires a lot of additional capital to be invested, so as to expand the business or for the overall growth of the current business. However, at times the required capital may not be available internally. In this case, the firms seek for investors outside the company to raise capital.

To ascertain: The main sources of funding for private companies for raising funds outside equity capital.

Expert Solution & Answer
Check Mark

Explanation of Solution

The main sources of funding for private companies to for raising funds outside equity capital are angel investors, venture capital firms, and institutional investors.

Conclusion

Hence, the main sources of funding for private companies to for raising funds outside equity capital are angel investors, venture capital firms, and institutional investors.

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Suppose that you are a U.S.-based importer of goods from the United Kingdom. You expect the value of the pound to increase against the U.S. dollar over the next 30 days. You will be making payment on a shipment of imported goods in 30 days and want to hedge your currency exposure. The U.S. risk-free rate is 5.5 percent, and the U.K. risk-free rate is 4.5 percent. These rates are expected to remain unchanged over the next month. The current spot rate is $1.90.  1.Move forward 10 days. The spot rate is $1.93. Interest rates are unchanged. Calculate the value of your forward position. Do not round intermediate calculations. Round your answer to 4 decimal places.
Don't solve. I mistakenly submitted blurr image please comment i will write values. please dont Solve with incorrect values otherwise unhelpful.
The  image is blurr please comment i will write values. please dont Solve with incorrect values otherwise unhelpful.
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