The text indicates that small cap growth stocks

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The text indicates that small cap growth stocks have performed better over time in terms of total return. However this higher return is related to higher risk because during a market’s high growth phase many firms get shaken out of the market. Once the market matures the situation changes. Please explain the following relationships between a firm and its market stages of growth, the kind of financing it should be seeking, the providers of such external finance at each stage of a market’s development, the appropriate mix of debt to equity and how this can vary by industry.

In a capital intensive but mature industry such as an electric utility growing about 5% per year on average and facing steady demand what would be the appropriate financing to add a gas turbine costing $300 million? Where would the utility seek financing?

Reference no: EM131179752

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