- 20 Marks
TMFS – APRIL 2023 – L2 – Q1 – Methods of Corporate Equity Finance
Identify and explain four methods of corporate equity finance suitable for a company avoiding bank loans or credit.
Question
Assume you are the economic and financial consultant of the newly established Abrewa Ventures Ltd which was formed with the owners’ own resources. At its 3d General Meeting, the shareholders approved plans for the medium-term growth of the company but concerns were raised about how to finance it. Upon advice, the owners decided not to use bank loans or any form of credit for the anticipated growth. Identify and explain the four methods of corporate equity finance that would be appropriate to meet the funding needs of the company.
[20 Marks]
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