When considering the type of funding to pursue for expansion, the directors should keep in mind "Changes in the stock market." Changes in the stock market can affect the corporation's ability to raise funds through equity financing, as well as influence interest rates and borrowing costs. Understanding the current market conditions can help them make informed decisions about whether to pursue debt or equity financing.
A corporation is looking to take advantage of market conditions and begin expanding as soon as possible. To do so, the company requires cash to purchase new buildings, machinery, and other capital goods. What should the directors keep in mind as they consider the type of funding to pursue?(1 point)
Responses
Banks will likely offer disappointingly low interest rates.
Banks will likely offer disappointingly low interest rates.
The types of saving accounts a bank offers.
The types of saving accounts a bank offers.
Involving a bank will likely make borrowing more expensive.
Involving a bank will likely make borrowing more expensive.
Changes in the stock market.
1 answer