Tag Archives: Leigh Jones

Explain in words why new common stock that is raised externally has a higher percentage cost than equity that is raised internally by reinvesting earnings.

During the last few years, Jana Industries has been too constrained by the high cost of capital to make many capital investments. Recently, though, capital costs have been declining, and the company has decided to look seriously at a major expansion program proposed by the marketing department. Assume that you are an assistant to Leigh […]