Question
1.Assume that the value we calculate using the Gordon Equation and the Market price fo a stock are quite different . What might account for
1.Assume that the value we calculate using the Gordon Equation and the Market price fo a stock arequite different.
What might account for the difference?
2.Why might a firm prefer to raise capital throughequity?
Why might they prefer other sources instead, such asdebt(loans, or issuing bonds)?
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Advanced Financial Accounting
Authors: Richard Lewis, David Pendrill
7th Edition
0273658492, 978-0273658498
