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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 1082 |
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SAI can also enhance liquidity and reduce cost of capital by offering its stocks online. Online direct stock purchases and dividends reinvestment programs allow companies to disclose more information and sell stocks at much cheaper rates narrowing the gap between the informed and uniformed investors...
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This financial risk occurs when the interest rate (cost) of source funds changes while the interest rate on the uses of those funds (benefit) remains constant, (Plesko, 2007). If SAI invests in the wireless communications market now only to have its credit line interest rates steadily to climb before the expected seven year life of this project is complete, then from a financial prospective this investment will no longer be attractive...
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