Grace is the financial manager for Empire State Fabrication and has decided to raise additional funds for the company by raising equity capital.She might do so by ________.

Question

Quizplus · Accepted Answer

Selling a bond (option A) and selling marketable securities (option C) both refer to raising debt capital, not equity capital. Establishing a line of credit (option D) is a form of debt financing as well. The best way to raise equity capital is by persuading existing owners to contribute additional funds (option B), such as through a rights offering or a private placement of shares.

Grace Is the Financial Manager for Empire State Fabrication and Has