1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
N76 [4]
3 years ago
7

Which financing option has the highest overall costs?

Business
2 answers:
Anvisha [2.4K]3 years ago
7 0

Answer:

A. rent to own

Explanation:

katrin2010 [14]3 years ago
4 0

<u>Equity financing has the highest overall cost. </u>

Further Explanation:

The financing options that are available to the company are equity and debt. Equity  Financing refers to the issue of equity shares to the public. Debt refers to the loan taken by the company from the public or any financial institutions. The equity shareholders have the right to vote in general meetings while the debt holder does not have any such rights.

The equity shareholders are also entitled to receive dividends while debt holders are entitled to receive the interest regardless of whether the company is having a profit or not. The interest paid to debt-holders is deducted from the net profit before any tax is charged. The interest reduces the taxable income while the dividend is calculated on net profit after tax. Thus, the cost of using debt finance is lower as the amount which is paid as the interest is charged against the tax.

<u>Therefore, Equity financing involves a higher cost than Debt financing. </u>

Learn more:

1. Learn more about raising the equity

brainly.com/question/7854996

2. Learn more about the problem related to equity theory

brainly.com/question/3771927

3. Learn more about the short-term financial goals

brainly.com/question/2451748

Answer details:

Grade: Senior School

Subject: Financial Management  

Chapter: Cost of Capital

Keywords: Equity financing, the highest overall cost, debt financing, financing options, capital, business, shareholder’s fund, loan, financial management, raise, issue.

You might be interested in
Who remabers portal?
Tju [1.3M]

Answer:

me

Explanation:

8 0
3 years ago
Read 2 more answers
About how long after WWII did employers first start to push back against union encroachment?
Aleksandr-060686 [28]

Answer:

The correct answer is: 10 years.

Explanation:

Almost after ten (10) years after World War II (WWII) ended, the American Federation of Labor (<em>AFL</em>) and the Congress of Industrial Organizations (<em>CIO</em>) joined forces in 1955 under union leader John L. Lewis command. This was mainly caused because of the increase in the number of unions by that year that included law enforcement officials, health care employees, and postal office workers.

5 0
3 years ago
Foyert Corp. requires a minimum $6,900 cash balance. If necessary, loans are taken to meet this requirement at a cost of 2% inte
tekilochka [14]

Answer:

answer is attached

Explanation:

     

Download xlsx
7 0
3 years ago
Which of the following is an example of fraud?
Dmitry_Shevchenko [17]

Answer:

c

Explanation:

if it was never in stock its misleading and a fraud

7 0
3 years ago
Read 2 more answers
Which of the following is a result of over-diversification through acquisition? Select one:
Aleksandr-060686 [28]

Answer:

3) Corporations use acquisition as a substitute for innovation.

Explanation:

The fastest way in which a corporation can enter a new market or develop new products is through buying existing companies that already operate in the new target markets or have developed the new products that the corporation wishes to sell.

Research and development is very costly and time consuming, and on many occasions the results aren't even good or are not as good as expected. By acquiring a smaller company that has already developed the product, then the corporation might even save money.  

6 0
3 years ago
Other questions:
  • _____ are the cost of borrowing money.
    7·2 answers
  • A ledger: Select one:
    8·1 answer
  • Today, jennifer earns $55000 at her first job. her mom used to make $15,000 at her first job in 1975. jennifer is of the opinion
    6·1 answer
  • Retail stores are often classified on the breadth and depth of their merchandise assortment. The breadth of the merchandise is t
    8·1 answer
  • I feel nice so just tell me your fave game
    14·2 answers
  • The Don't Tread on Me Tire Company had retained earnings at December 31, 2015 of $202,000. During 2016, the company had revenues
    11·1 answer
  • As little as
    6·1 answer
  • Rohan wants to buy part of a company, and is interested in stocks. He knows that his favorite company, Apple, is traded on the s
    7·1 answer
  • A label on foods prepared and packaged onsite for retail sales must list which information?
    13·1 answer
  • A project manager has multiple projects. One project has new team members and is in its early stages. Unfortunately, the project
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!