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Title: |
Study on the Cost of Equity Financing of Listed Companies |
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Source: |
International Conference on Engineering and Business Management 2012(Part 4 Urban Management and Financial Investment)
(pp 3020-3022)
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Author(s): |
Juan Zhao, Beijing Jiaotong University, Beijing, China, 100044
Liying Zhang, Beijing Jiaotong University, Beijing, China, 100044 |
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Abstract: |
Cost of Equity Financing is an important consideration for a listed company to make financing decisions. In China, as result of the cost of dividend, bonus and so on is relatively low, so listed companies prefer to Equity Capital. This paper points out the implicit cost which weighs heavily in the cost of Equity Capital, but isn’t taken into consideration well, and analyzes the implicit cost in detail.
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