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Question 7 2 pts One of the sources of this funding is called common equity and there are two ways to go about raising it.

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Question 7 2 pts One of the sources of this funding is called common equity and there are two ways to go about raising it. First, the company can [Select] . This means that they set aside some of the profit for the year and instead of paying it out to shareholders as a dividend, they reinvest it. Second, the company can raise common equity, the firm has to [Select] . Companies generally prefer to [Select ] to finance their projects and only (Select] when they absolutely have to. There are three main sources of capital. The first component is [Select] . The company pays for the money it raises through debt by making periodic interest payments to its lenders, the banks, and the bondholders. The second component of capital is [Select] . This is a hybrid form of capital. The third component is [Select] . This includes money raised by selling [Select] to investors

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