DQ Questions 4 Essay Example | Topics and Well Written Essays - 250 words

DQ Questions 4 - Essay ExampleMy steering would be on common stock (Bragg, 2011).Weighted average cost of capital is the cost found on relative significance of each citation of capital. It is the product of the percentage contribution of each source of capital and percentage cost of each source. It therefore consists of debt, preferred stock, common stock, and their percentage contribution, and costs. It is more purloin in capital budgeting because it gives accurate average values for each unit capital that it derives from the different sources. WACC informs organizations towards optimum cost of long-term capital through identifying unit costs (Bragg, 2011).Initial Public Offer defines an sign launch of a companys shares, in the stock market, to the public. The offering company avails its share for corrupt in return for cost of the stock. This allows an organization to grow financially because it creates gold inflow without material cash outflow from the offering company. Merg er and acquisition is a more appropriate way to grow when harvesting prospects extend beyond finances to include expertise, market control, and property, among other resources (Bragg,