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Message: <blockquote data-quote="hxnnahrobinson" data-source="post: 248276" data-attributes="member: 26629"><p>I study Finance, and this is very useful. Here is some more advice too:</p><ul> <li data-xf-list-type="ul">Link equity financing to:<ul> <li data-xf-list-type="ul">Initial Public Offerings (IPOs) – when a firm first lists on the stock market to raise capital.</li> <li data-xf-list-type="ul">Seasoned Equity Offerings (SEOs) – when an already listed firm issues additional shares.</li> <li data-xf-list-type="ul">Both typically increase the number of shares outstanding, leading to share dilution (reduced ownership percentage and possibly lower EPS for existing shareholders).</li> </ul></li> <li data-xf-list-type="ul">Firms can also issue shares through:<ul> <li data-xf-list-type="ul">Rights issues – existing shareholders are offered new shares, usually at a discount, to maintain their ownership proportion.</li> <li data-xf-list-type="ul">Bonus (scrip) issues – free additional shares given to shareholders; no new cash is raised, but total shares increase, so dilution still occurs in value terms</li> </ul></li> <li data-xf-list-type="ul">Be aware of financing restrictions often written into legal agreements:<ul> <li data-xf-list-type="ul">Covenants may restrict additional borrowing or equity issuance.</li> <li data-xf-list-type="ul">Dividend restrictions can limit payouts to preserve cash for debt servicing.</li> <li data-xf-list-type="ul">Asset disposal restrictions prevent firms from selling key assets without lender approval.</li> <li data-xf-list-type="ul">These are designed to protect creditors and control risk-taking by management</li> </ul></li> <li data-xf-list-type="ul">Always evaluate financing choices using the risk–return trade-off:<ul> <li data-xf-list-type="ul">More debt → lower cost (as creditors are repaid first when a company goes into liquidation) but higher financial risk (gearing/leverage) - this can limit the firm’s liquidity due to interest payments on debt</li> <li data-xf-list-type="ul">More equity → safer balance sheet but higher cost of capital and potential dilution.</li> </ul></li> </ul></blockquote><p></p>

Verification: Our company is called, "The Corporate ___ Academy". What is the missing word here?

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