Asked by
Jasminah Jones
on Dec 01, 2024
Verified
The components of a firm's capital are debt, common equity, and preferred stock.
Preferred Stock
A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, usually with fixed dividend payments.
Common Equity
The amount of money that would be returned to shareholders if all the assets were liquidated and all the company's debt was paid off.
- Attain an understanding of the elements that constitute a company's capital and the relative cost implications of these elements.
Verified Answer
LH
Learning Objectives
- Attain an understanding of the elements that constitute a company's capital and the relative cost implications of these elements.