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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.

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Answer:

Yes

Explanation:

Yes because over time the earth has gotten hotter and hotter each decade, which is undeniable proof that it is real.

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3 years ago
According to state agencies that monitor day care facilities, a typical sanitation requirement is that one toilet and handwashin
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Final answer,

According to state agencies that monitor day care facilities, a typical sanitation requirement is that one toilet and handwashing fixture be provided for <span>every student</span>


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Margarita [4]

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adelina 88 [10]

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This is to say, that revenues should only be recognized when the associated expenses with those revenues have been spent.

For example, in numeral a), we can see that Norfolk Southern Corporation recieved cash in advance, but it only recognized revenue once it had performed the services associated with that cash collection.

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