International Finance

APA Format plus references ………. ; ; ; 700 to 800 words

Companies seek the lowest average rate of financing costs to capitalize the business. ;Common sources of financing are as follows:

• Common stock equity

• Preferred stock equity

• Bond debt

  Explain how the following risks may affect these 3 sources of financing and the impact overall on weighted average cost of capital (WACC):

• Default risk

• Inflation

• Interest rate risk

• Stock and market volatility ;