Business Finance
Saudi Electronic University Principle of Finance Preferred and Common Stock Paper

Saudi electronic university

Question Description

I’m studying and need help with a Management question to help me learn.

you are the CFO of a publicly held company and need to raise capital for the firm by issuing some kind of equity. Why would a firm want to issue both preferred stock and common stock rather than just one category of stock?

Search the Internet for an academic or industry-related article. Select an article that relates to these concepts in the context of doing business in Saudi Arabia.

For your discussion post, your first step is to summarize the article in two paragraphs, describing what you think are the most important points made by the authors (remember to use citations where appropriate). For the second step, include the reference listing with a hyperlink to the article. Do not copy the article into your post and limit your summary to two paragraphs. Let your instructor know if you have any questions and enjoy your search.

- The work must be in APA style

- Include the reference

- No more than 2 pages

Student has agreed that all tutoring, explanations, and answers provided by the tutor will be used to help in the learning process and in accordance with Studypool's honor code & terms of service.

Final Answer

Attached.

Running head: PRINCIPLES OF FINANCE

1

Principles of Finance
Name
Institution

PRINCIPLES OF FINANCE

2
Preferred and Common Stock

There are instances where a company will issue both preferred stock and common stock.
In such a case, it would imply that as the CFO, I want to increase the sources of financing for the
organization. Notably, most investors will be attracted to the preferred stock as compared to the
common stock because of perks such as voting rights. Given that, offering both types of stock
makes sense since it will generate more money for the company. As well, as CFO, one has to
assess the size of the organization before taking the step to issues stock (Pride, Hughes, &
Kapoor, 2014). In many situations, when the company is small, it o...

Kishnewt2017 (32424)
New York University

Anonymous
Return customer, been using sp for a good two years now.

Anonymous
Thanks as always for the good work!

Anonymous
Excellent job

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4
Similar Questions
Related Tags