Question

In the aggregate, debt offerings are much more common than equity offerings and typically much larger...

In the aggregate, debt offerings are much more common than equity offerings and typically much larger as well. Why?

Homework Answers

Answer #1

As the Large cos have the access to the Public Debt Market and also with Debt they dont have to dilute ownswerhip with the Debt issues also at the same time, the Equity is issued by comperatively small cos. for instance like new cos going public.

That is the reason debt offerings are much more common than equity offerings and typically much larger as well.

NOTE: Do upvote the answer, if this was helpful.

NOTE: Please don't downvote directly. In case of query, I will solve it in comment section in no time.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Discuss why corporate debt offerings are typically much more common than equity offerings and typically much...
Discuss why corporate debt offerings are typically much more common than equity offerings and typically much larger as well.
Why do you think debt offerings are more common than equity offerings and typically much larger...
Why do you think debt offerings are more common than equity offerings and typically much larger as well? WITH references so I may read about it! please
1. What role does the cost of capital play in the overall financial decision making of...
1. What role does the cost of capital play in the overall financial decision making of the firm’s top managers? 2. Why do you think debt offerings are more common than equity offerings and typically much larger as well?
In comparison to small banks, larger banks typically have A.) more off balance-sheet activities B.) more...
In comparison to small banks, larger banks typically have A.) more off balance-sheet activities B.) more equity capital C.) more core deposits D.) larger net interest margins
Private equity funds their managers typically earn a small fee, much less than those of hedge...
Private equity funds their managers typically earn a small fee, much less than those of hedge funds and so are not that well regarded as a career destination The SEC has them under regulation almost as strict as banks under Rule 4d Are not subject to regulations prescribed in the Sarbanes-Oxley Act George Soros is known as the king of private equity>
By law, public offerings of debt and equity to the public must be accompanied by a...
By law, public offerings of debt and equity to the public must be accompanied by a ________, which must be lodged with ASIC Select one: a. Balance sheet b. Statement of capital structure c. Statement of cash flows d. Prospectus
In an aggregate production, output per worker typically increases at an increasing rate as more physical...
In an aggregate production, output per worker typically increases at an increasing rate as more physical capital per worker is added to the production process. true or false? Explain In the aggregate demand/aggregate supply model, when the central bank sells treasury bonds to commercial banks, the aggregate demand curve will shift to the left ture? false? pls explain why
If a company's target capital structure is 50% debt and 50% common equity, which would be...
If a company's target capital structure is 50% debt and 50% common equity, which would be a correct statement? Question 3 options: a) The cost of reinvested earnings typically exceeds the cost of new common stock. b) The interest rate used to calculate the WACC is the average after-tax cost of all the company's outstanding debt as shown on its balance sheet. c) The WACC is calculated on a before-tax basis. d) The cost of equity is always equal to...
Why are cycle times typically larger for a hoe excavator than a front shovel? What are...
Why are cycle times typically larger for a hoe excavator than a front shovel? What are some advantages of crawler bulldozers (give at least 2)? What are advantages to using bottom dump trucks? (give at least 2)? List and define the three types of blade adjustments. Summarize advantages and disadvantages of crawler cranes. What does the word "slew" mean with regard to tower cranes? what are two different ways a tower crane can slew? List dynamic factors that affect crane...
____ maintain a larger amount of assets in aggregate than the other types of depository institutions.
____ maintain a larger amount of assets in aggregate than the other types of depository institutions.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT