Question

If a company needs to raise money, it needs to offer some form of return to the investor or lender, likely in the form of:

A) Interest
B) Dividends
C) Capital gains
D) All of the above

Answer 1

When a company needs to raise money, it can offer interest, dividends, or capital gains as a form of return to investors or lenders.

So, the correct answer is D) All of the above.

Step-by-step explanation:

When a company needs to raise money, it can offer some form of return to the investor or lender. This return is usually in the form of interest, dividends, or capital gains.

Interest: A company may borrow money from an investor or lender and agree to pay them back with interest over a specified period of time. This is a common form of return for lenders and bondholders.

Dividends: If a company is profitable, it may distribute a portion of its earnings to its shareholders in the form of dividends. Dividends are typically paid out regularly to shareholders.

Capital gains: When an investor buys a share of stock in a company and later sells it for a higher price, they realize a capital gain. This is the increase in the value of the stock between the purchase and sale. Capital gains are a form of return for investors in stocks.

So, the correct answer is D) All of the above.