Question 1
Equity financing refers to arranging funding by ________.
◦ borrowing money from institutions
◦ selling corporate bonds
◦ selling ownership shares
◦ issuing commercial papers
◦ borrowing money from individuals
Question 2
Financing will cost more if ________.
◦ the opportunity cost is low for the financier
◦ investors lend less money
◦ the funding is for long-term
◦ the perceived risk is less
◦ a company is financially solid