Which of the Following Is a Benefit for Firms That

question 37

Multiple Choice

Which of the following is a benefit for firms that participate in the global capital market?

• A) availability of short-term financing
• B) availability of a large pool of financing sources at a lower, competitive rate
• C) access to larger funds exclusively in the domestic market
• D) access to unregulated and secured returns on investment

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Definitions:

Common Stock

A type of equity ownership in a corporation, representing a claim on part of the company's profits and assets.

Price-Earnings Ratio

A valuation ratio of a company's current share price compared to its per-share earnings, indicating the dollar amount investors will pay for $1 of earnings.

Market Price

The existing cost for buying or selling an asset or service.

Common Stock

Common stock represents shares of ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends.