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Foundations of Business - Standalo...

4th Edition
William M. Pride + 2 others
ISBN: 9781285193946

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BuyFindarrow_forward

Foundations of Business - Standalo...

4th Edition
William M. Pride + 2 others
ISBN: 9781285193946
Textbook Problem

In what circumstances might a large corporation sell stock rather than bonds to obtain long-term financing? In what circumstances would it sell bonds rather than stock?

Summary Introduction

To determine: The circumstances in which a large corporation sell stock rather than bonds to obtain long-term financing and the circumstances it would sell bonds rather than stock.

Introduction: Financing is the procedure of giving finances to business operations, creating procurements or investing. Financial organizations for example, banks are in the matter of giving funding to businesses, purchasers and investor to enable them to accomplish their objectives.

Explanation

The circumstances in which a large corporation sell stock rather than bonds to obtain long-term financing and the circumstances it would sell bonds rather than stock are as follows:

All elements considered, organizations would like to sell stocks. The principle reasons incorporate the way that cash from stock does not need to be reimbursed and dividends are not required...

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