Market stages of growth and financial seeking

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Explain relationship between a firm and its market stages of growth, financial seeking, providers of such external finance at each stage of a market's development, appropriate debt to equity ratio.

A text indicates that small cap growth stocks have performed better over time in terms of total retumn. However this higher retumn 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.

In a capital intensive but mature industry such as an elecunc 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: EM131178876

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