Effects of September 11 Rose, Inc., of Dallas, Texas, needed to infuse capital into its foreign subsidiaries to support their expansion. As of August $2001,$ it planned to issue stock in the United States. However, after the September 11,2001 , terrorist attacks, it decided that long-term debt was a cheaper source of capital. Explain how the terrorist attacks could have altered the appeal of the two forms of capital.

FindFind

International Financial Management

14th Edition
Madura
Publisher: Cengage
ISBN: 9780357130698
FindFind

International Financial Management

14th Edition
Madura
Publisher: Cengage
ISBN: 9780357130698

Solutions

Chapter 17, Problem 15QA
Textbook Problem

Effects of September 11 Rose, Inc., of Dallas, Texas, needed to infuse capital into its foreign subsidiaries to support their expansion. As of August $2001,$ it planned to issue stock in the United States. However, after the September 11,2001 , terrorist attacks, it decided that long-term debt was a cheaper source of capital. Explain how the terrorist attacks could have altered the appeal of the two forms of capital.

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