Grace is the financial manager for Branson Inc.and has decided to raise additional funds for the company by raising equity capital.She might do so by _____.

Question

Quizplus · Accepted Answer

Raising equity capital refers to selling ownership shares in the company. Option A (selling bonds) refers to raising debt capital, while option C (selling marketable securities) refers to selling stocks or bonds that the company already owns. Option D (establishing a line of credit with a local bank) refers to securing a loan, which is also a form of debt capital. Therefore, the best choice for raising equity capital is B, persuading existing owners to contribute additional funds.

Grace Is the Financial Manager for Branson Inc