Examlex
Select the pair below that is a correct match of the structure and zone.
External Equity
Funds raised from outside investors, including public offerings, private placements, and venture capital.
Flotation Costs
The costs associated with issuing new securities, including underwriting, legal, and registration fees, which affect the net proceeds of the issued securities.
Market Risk Premium
The Market Risk Premium refers to the additional return an investor expects from holding a risky market portfolio instead of risk-free assets. It represents the compensation investors demand for taking on higher risk.
Cost of New Equity
The cost of obtaining additional funding through the issuance of new equity, considering underwriting fees and other issuance costs.
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