Question

Companies raise capital in two main ways: debt and equity. In a free economy, capital is allocated through a market system. The ________is the price that lenders receive and borrowers pay for debt. There is no single "price"—"prices" on different types of debt vary depending on the borrower's risk, the use of funds borrowed, the collateral used to back the loan, and the length of time the funds are needed.

1)Dividend payment

2)Capital Gain

3) Interest Rates

Answer 1

3) Interest Rates

Explanation:

Is the amount of the interest that is due as per the period, as the part of the amount that is lent, deposited or the borrowed

The interest rates show the amount of money borrowed and thus there is a problem of the lenders in terms of receiving and borrower to pay for the debt. Hence the price to price varies according to the borrowed risk rates.

Collateral uses to back the on and the length of the time the funds are needed.

Answer 2

3) Interest Rates

Step-by-step explanation:

• Is the amount of the interest that is due as per the period, as the part of the amount that is lent, deposited or the borrowed

• The interest rates show the amount of money borrowed and thus there is a problem of the lenders in terms of receiving and borrower to pay for the debt. Hence the price to price varies according to the borrowed risk rates.

• Collateral uses to back the on and the length of the time the funds are needed.