Tag: Exchange Rate Risk and Capitalization
-
Explain how the following risks may affect these 3 sources of financing in international capital markets.
Exchange Rate Risk and Capitalization 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 in international capital markets. In addition, explain how these risks…