Article | Fund Sourcing Avenues

Running head: CORPORATE ACCOUNTING 1
Corporate Accounting
Name:
Institution:
Date:

CORPORATE ACCOUNTING 2
TO: The CFO
FROM: The Financial Analyst
CC: The CEO
DATE: 30th AUGUST 2019
SUBJECT: Fund Sourcing Avenues
Memo below shows the best method and recommendations for available fund sourcing.
Apple Inc. is the biggest designer, developer and seller of computer software,
consumer electronics and online services in the world. It is an American technological
company that deals with selling and developing electronic software’s and hardware’s. It has
been listed in the US and global markets and has been several ways of raising capital. The
company has various stakeholders’ equity and the purpose of this is to find out the pro and
cons of strategies of generating cash through equity (Burrai, Font, & Cochrane, 2015).
Pros and cons of issuing common stock
Common stocks are ordinary shares issued by companies as an alternative to raising
equity using debt or preferred shares. The advantages of common stock is that it is less
expensive than issuing debt which will require servicing of the debt. It is less expensive since
an IPO does not need an obligatory payment of interest to investors but rather they are
required to make discretionary payments of dividends when the profits are high.
The cos to this strategy is that increasing the common shares in the markets increases the
number of outstanding shares. When additional share are introduced into the market, they
dilute the value of the original share and ownership to the existing shareholders. (Buttner, &
Lowe, 2017).