a) Were U.S. nonfinancial corporations on average issuing new
equity or buying their shares back? Provide evidence from the
article.
b) The pattern of corporate financing is discussed in the
below. Explain the reasons for this pattern of financing using all
relevant topics/theories of capital structure.
Read The Article In The Link Below Https Www Federalreserve Gov Econres Notes Feds Notes Equity Issuance And Retirem 1 (124.31 KiB) Viewed 76 times
Figure 15.2 Financing Decisions by U.S. Nonfinancial Corporations 150% Internal financing New equity New debt 125% 100% 75% 50% 25% 0% -25% -50% -75% -100% -125% -150% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 SOURCE: Board of Governors of the Federal Reserve System. "Flow of Funds Accounts of the United States." Federal Reserve Statistical Release. June 9, 2011, <http://www.federalreserve.gov/releases/zl/20110609.
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!