Question

Majestic Theaters has plans to build a new $30 million movie theater and intends to finance this project through the sale of additional shares of ownership in their firm. Selling new shares of stock represents __________ financing.

Answer 1

Based on the information given selling new shares of stock represents equity financing.

Equity financing can be defined as the process of selling the percentage of the stock you own or selling the shares of your stock in order to raise funds.

Example an investor may choose to to purchased a shares in the company so as to make money or profit by selling their those shares.

Based on the information given selling of additional shares of ownership represent equity financing as the investors is trying to make money or raise funds so as to build a new movie theater by selling the new shares of stock.

Inconclusion selling new shares of stock represents equity financing.

Learn more about equity financing here:brainly.com/question/14033901