Description
Instructions
There are many approaches a corporation or company can use to raise capital. Based on the resources for this module, explain how a company can raise capital through the issuance of equities. Include the advantages and disadvantages of the methodology.
Think about the Fortune 500 company you will be making recommendations for in the final project. As the CFO of the company, would you recommend the issuance of equities to raise capital? Explain why or why not.
For additional details, refer to the rubric document.
The company I selected is AT&T. Please do focus on the every points in the rubric and follow the requirement about the word, APA style and everything in rubric. Thanks.
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Explanation & Answer
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Running Head: COMPANY ISSUANCE OF EQUITIES
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Company Issuance of Equities
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Introduction
COMPANY ISSUANCE OF EQUITIES
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By definition, equity finance is a way that a company can raise money from external
investors in exchange for handing over a part of the business. It is selling of shares by a
corporation to raise capital. This can be of different forms like; sharing the ownership of the
company to some degree or even sale of future profits of the company. Contrary to other lenders,
equity investors are not involved in charging interests or claiming payments on particular dates.
They therefore require to be paid depending on profits and capital gained by the company. There
are several sources of equity finance for a company. They include; Business Angels - these are
ind...