1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
san4es73 [151]
2 years ago
7

You are the CFO of Rock Inc, a young start-up. The company has not generated positive cash flows for the past three years and yo

u estimate that it will take at least another 2 years for the company to become cash flow positive. To fund the next phase of growth, what should be a better source of capital, debt or equity? Why?
Business
1 answer:
Nezavi [6.7K]2 years ago
8 0

Answer:

Equity

Explanation:

The choice should be very straight forward, the company doesn't generate enough cash, and if it takes debt, it will not be able to pay it back. The only choice for raising capital is through issuing equity.

This is something normal for many startups, e.g. FB, Amazon, Google, etc., all got financed through equity for several years before being able to issue debt.  Of course debt is cheaper than equity, but it also poses a risk for the company.

You might be interested in
Taobao has been placed on the U.S. Trade Representative office's blacklist of "notorious marketplaces" due to the website's sale
trasher [3.6K]

Answer:

The correct option is A

Explanation:

Taobao is a online shopping market place in China but the website started to sale the counterfeit products which is a violation of the rights. So, the US representative blacklist the site. The reason for blacklist is to protect the national security as the counterfeit products if sold on the site then it would create problem for other online websites and which will create problem in the US trade.

8 0
3 years ago
Philip works at a graphic designing firm. He can efficiently work on various graphic design software. He can create visuals and
Mariana [72]

Answer:

technical skills

Explanation:

According to my research on different employment abilities, I can say that based on the information provided within the question this scenario illustrates that Philip has technical skills. These are procedures, techniques, and knowledge which allows you to use certain hardware/software that is required to get a job done.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

7 0
3 years ago
Read 2 more answers
Jessica Adams is 21 years old and has just graduated from college. In considering the retirement investing options available at
Marina CMI [18]

Answer:

The summary as per the given query is summarized in the explanation section below..

Explanation:

The given values are:

The nominal rate of return,

= 7%

i.e.,

= 0.07

Inflation,

= 4%

i.e.,

= 0.04

  • Lengthy-term inflation would lessen the return on investment that lowers the net return as long-term investments are made.
  • It can also aim to obtain a higher return that will comfortably exceed the rate of inflation and therefore is beneficial towards diminishing the average return.

Now,

The rate of return will be:

= (\frac{1+ nominal \  rate \ of \ return}{1+Inflation}) -1

On substituting the values, we get

= (\frac{1+0.06}{1+0.04} )-1

= (\frac{1.07}{1.04} )-1

= 1.028846-1

= 2.8846 \ percent

Therefore it isn't able to measure the average return rate because the quantity of years for its expenditure.

5 0
3 years ago
LO 2.3In the cost equation Y = a + bx, Y represents which of the following?
nevsk [136]

Answer:

total costs

Explanation:

The cost equation Y = a + bx represents the mixed cost which includes both fixed and variable components

The explanation of the cost equation is shown below:

Y = a + bx

where

Y = Total cost

a = Fixed cost

b = variable rate per unit for an activity

X = number of units in an activity

So, this cost equation is referred to the mixed cost which considers both types of cost i.e fixed cost and the variable cost

8 0
3 years ago
The management of Cooper Corporation is considering the purchase of a new machine costing $420,000. The company's desired rate o
liraira [26]

Answer:

b.1.08.

Explanation:

The computation of the present value index is shown below;

As we know that

Present Value Index = Present value of Net Cash Inflow ÷ Initial Cash outflow

where,

Initial investment = $420,000

And, the present value of net cash inflows are

Year        Cash Flow (in $)       PVF at 10%            Present Value (in $)

1               180,000                   0.909                     163,620

2              120,000                   0.826                      99,120

3               100,000                  0.751                        75,100

4                90,000                   0.683                      61,470

5                90,000                   0.621                       55,890

TOTAL                                                                       455,200

So, the present value index is

= $455,200 ÷ $420,000

= 1.08

4 0
3 years ago
Other questions:
  • On December 1, 2016, Fine Dining Products borrowed $84,000 on a 12%, five-year note with annual installment payments of $16,800
    10·1 answer
  • Companies set rules about workplace conduct in order to
    14·1 answer
  • When a product or service is delivered for which a customer advance has been previously received, the appropriate journal entry
    6·1 answer
  • The housekeepers are expected to clean how many rooms per day in an average hotel?
    7·1 answer
  • Which photo Grapher is famous for his or her work at Yosemite national park?
    11·2 answers
  • 1. To gain profit and earn a living.​
    15·2 answers
  • Evening Star, Inc. produces binoculars of two quality levels: field and professional. The field model requires six direct-labor
    10·1 answer
  • Recognizing deferred tax assets and liabilities is referred to as ______ tax allocation. Multiple choice question. intraperiod d
    15·1 answer
  • A customer buys 17. 01 in gas and requests one five dollar [$5] lottery ticket, two one dollar [$1] lottery tickets, and one [$3
    5·1 answer
  • Amazon and Expedia are best described as ________ that sell products and services directly to final buyers via the Internet. Gro
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!