Equity Financing


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Equity Financing
10102061010202 Equity Financing
INTRODUCTION Equity capital is money provided in exchange for ownership in the company. The equity investor receives a percentage of ownership that ideally appreciates in value as the company grows. The investor may also receive a portion of the company's annual profits, called dividends, based on his ownership percentage. For example, a 10% dividend yield or payout on a company's stock worth $200 per share means an annual dividend of $20. Before deciding to pursue equity financing, the entrepreneur must know the positive and negative aspects of this capital.
Citation
Steven Rogers: Entrepreneurial Finance, Third Edition: Finance and Business Strategies for the Serious Entrepreneur. Equity Financing, Chapter (McGraw-Hill Professional, 2014), AccessEngineering Export