International Finance- Phase 2 - Exchange Rate Risk and Capitalization

Task Type: Individual Project   Deliverable Length: 700–800 words    
Due Date: 5/10/2014 10:00:00PM  CT [removed]    

NEED MINIM 3 REFERENCES- APA FORMAT- ORIGINAL WORK PLEASE AS IT WILL BE CHECKED!

Companies seek the lowest average rate of financing costs to capitalize the business. Common sources of financing are as follows:

• Common stock equity
• Preferred stock equity
• Bond debt

Explain how the following risks may affect these 3 sources of financing and the impact overall on weighted average cost of capital (WACC):

• Default risk
• Inflation
• Interest rate risk
• Stock and market volatility