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Explain four (4) methods of raising equity finance that can be used by a company to fund its branch expansion. Explain why the cost of

  1. Explain four (4) methods of raising equity finance that can be used by a company to fund its branch expansion. 
  2. Explain why the cost of equity tends to be greater than the cost of debt.
  3. Briefly explain why a company may prefer to fund investment projects by the use of retained profits rather than by the issue of new equity shares.
  4. Discuss the factors to be considered by the company in choosing to raise funds via a rights issue.

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Methods of raising equity finance for branch expansion Initial Public Offering IPO This involves issuing shares to the public for the first time A company can raise a significant amount of capital by ... blur-text-image

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