Question

The two principal sources of financing for corporations are Group of answer choices cash and common equity common equity and preferred equity debt and accounts payable debt and equity

Answer 1

Answer:

common equity and preferred equity

Explanation:

It is important to remember that, each source of finance carry its own benefits and risk for companies

The two principal sources of financing for corporations are common equity and preferred equity.

This is so because, with Common Equity, the Company can raise more capital through the public and with Preferred Equity the company reduces its financial risk since most dividends using this instrument can be adjusted or deferred unlike using debt instruments which carry a significant financial risk.