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Companies raise capital in two main ways: debt and equity. In a free economy, capital is a

Companies raise capital in two main ways: debt and equity. In a free economy, capital is allocated through a market system. The ________is the price that lenders receive and borrowers pay for debt. There is no single "price"—"prices" on different types of debt vary depending on the borrower's risk, the use of funds borrowed, the collateral used to back the loan, and the length of time the funds are needed.

1)Dividend payment

2)Capital Gain

3) Interest Rates

Please fill in the blank and explain. Thank you

Interest Rates

Companies raise capital in two main ways: debt and equity. In a free economy, capital is allocated through a market system. The ________is the price that lenders receive and borrowers pay for debt. There is no single "price"—"prices" on different types of debt vary depending on the borrower's risk, the use of funds borrowed, the collateral used to back the loan, and the length of time the funds are needed.

1)Dividend payment

2)Capital Gain

3) Interest Rates

Please fill in the blank and explain. 

Dec 04 2019 View more View Less

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