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lara31 [8.8K]
3 years ago
15

In order to open a car wash, Aamina decides to obtain funds through debt financing. which if the following ways can she pursue t

his?
A. by adding partners
b. though stocks
c. by waiting to open the business until she has saved enough cash
d. through bonds
Business
2 answers:
Veseljchak [2.6K]3 years ago
8 0

Answer:

d. through bonds

Explanation:

Debt financing is a way of raising money by selling debt instruments to investors such as bills, notes or bonds. The company will pay back the debt instrument with some interest after a certain time. Debt financing is the opposite of equity financing where the company selling stocks and share ownership of the business.

vampirchik [111]3 years ago
6 0

Answer:

D. Through bonds

verified on  a p e x

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The ABC Company is planning a new product line and will build a new plant to manufacture the parts for a new product line. The p
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a

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b.

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3 years ago
Outstanding stock of the Cheyenne Corporation included 37000 shares of $5 par common stock and 11500 shares of 5%, $10 par non-c
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Answer:

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3 years ago
Langley Clinics, Inc buys $400,000 in medical supplies each year (at gross prices) from its major suppliers, consolidated servic
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Answer:

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c. Langley is foregoing a 2.5 percent discount on its $400,000 of purchases, so the dollar cost of the additional (costly) trade credit is 0.025 x $400,000 = $10,000. Dividing this dollar cost by the amount of additional credit provides the approximate percentage cost of the costly trade credit:

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Discount percent 360

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97.5 35

d. If Langley can obtain a bank loan for less than 26.4 percent cost, including interest cost and fees, it should replace the costly credit ($37,916.67) with a bank loan.

e. As indicated in Part d, only the costly trade credit should be replaced. Langley should always take the $10,033.33 of free trade credit.

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3 years ago
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