A USCompany Has the Following Choices of Financial Markets in Which

question 4

Multiple Choice

A U.S.company has the following choices of financial markets in which to raise capital.Which one will it most often prefer?

• A)foreign bond
• B)foreign bank
• C)a new issue of common stock
• D)domestic banks

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Definitions:

Fair Value

An estimate of a security's worth on a given market based on what a knowledgeable, willing, and unpressured buyer would likely pay to a knowledgeable, willing, and unpressured seller.

Non-Cancelable

A contract or agreement clause indicating that the arrangement cannot be terminated before its expiration.

Nonrenewable

Resources or energy sources that cannot be replaced or replenished once they are consumed, such as fossil fuels.