Which of the following would be classified as equity financing for a firm?
A)Preferred shareholders,banks,and nonbank lenders
B)Nonbank lenders,common shareholders,and commercial banks
C)Preferred shareholders,common shareholders,and retained earnings
D)Suppliers,nonbank lenders,and commercial banks

Question

Quizplus · Accepted Answer

Preferred and common shareholders provide equity financing by investing in the company in exchange for ownership shares. Retained earnings also represent equity financing, as profits that are reinvested in the company can increase its value for shareholders.

Which of the Following Would Be Classified as Equity Financing