Respuesta :
She could persuade the owners to add more funds to the company, thereby giving them more financial capital to work with. This will allow the business to purchase more (or higher-quality) items with which to work and produce the items that they are selling.
Grace can raise funds by [tex]\fbox{persuading existing owners to contribute additional funds}[/tex].
Further Explanation:
Equity Capital: Equity capital is raised by the issue of equity shares. The equity shares can, to the existing shareholder, friends, relatives, and the general public. The shares are issued to the public through Initial Public Offering (IPO). The equity shareholders have the right to vote and are entitled to receive a dividend.They receive dividend only when there are adequate profits. When the shares are issued to the existing shareholder, it is known as the right issue.The right share holder can denounce the right to purchase shares to the other person.When the shares are issued to the particular class of shareholder it is known as the preferential issue.
Therefore, Grace can persuade existing owners to contribute additional funds in order to raise equity capital.
Learn more:
1. Learn more about capita appreciation
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2. Learn more about the management of the company
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3. Learn more about the earning per share
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Answer details:
Grade: High School
Subject: Business Studies
Chapter:Decision Making
Keywords: grace, financial manager, empire state fabrication, raise additional funds, raising equity capital, existing owners to contribute additional funds, financing decisions, preferential issue, rights issue, an existing shareholder.
