A company may raise additional equity capital through:

Question

Quizplus · Accepted Answer

All of the given options are viable methods for a company to raise additional equity capital.

A rights issue involves offering existing shareholders the right to purchase new shares at a discounted price, which allows the company to raise capital while allowing current shareholders to maintain their ownership percentage.

A placement involves offering new shares to a select group of investors (such as institutional investors) rather than to the general public. This can often be a quicker and more efficient way to raise capital than a public offering.

A dividend reinvestment scheme allows shareholders to use their dividend payments to purchase additional shares in the company, which can increase the company's equity capital without the need for external financing.

A Company May Raise Additional Equity Capital Through