Task Type: Individual Project Deliverable Length: 700–800 words
Due Date: 5/10/2014 10:00:00PM CT
NEED MINIM 3 REFERENCES- APA FORMAT- ORIGINAL WORK PLEASE AS IT WILL BE CHECKED!
Companies seek the lowest average rate of financing costs to capitalize the business. Common sources of financing are as follows:
- Common stock equity
- Preferred stock equity
- Bond debt
Explain how the following risks may affect these 3 sources of financing and the impact overall on weighted average cost of capital (WACC):
- Default risk
- Inflation
- Interest rate risk
- Stock and market volatility