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
mel-nik [20]
3 years ago
4

Would it be wise for a young company that is growing quickly but still hasn't achieved profitability to attempt to issue bonds a

s a way to expand its working capital?
Business
1 answer:
Ksivusya [100]3 years ago
8 0

Answer:

No, the company should seek other alternatives in order to raise capital, e.g. private equity investors.

Explanation:

Bonds are the cheapest way to raise capital, but they also require the company to pay some type of annual coupon. If the company hasn't been able to make a profit yet, where will it get the money in order to pay the coupons. It would be basically a Ponzi scheme since the company would have to use the proceeds from the bond issuance in order to pay interests, but what happens when they ran out of money?

You might be interested in
The expected value of each course of action in a decision tree is determined by starting at the beginning of the tree (the left-
zvonat [6]

Answer:

False

Explanation:

The expected value of each course of action in a decision tree is not determined by starting at the beginning of the tree, instead it is a process because you need to make a desition and in some extend you espect to have some results but  some of them are uncertain or unespected. in this kind of scheme Squares represent decisions, and circles represent uncertain outcomes. Then you need to calcule the desition nodes giving each option a cost or value, This will give you a value that represents the benefit of each decision. at the end calculating choose the option that has the largest benefit, and take that as the decision made. This is the value of that decision node.

5 0
4 years ago
Most purchases agreements are contingent on which two items
Dmitry_Shevchenko [17]
A purchase agreement is a legally binding contract that states the terms and conditions of purchasing a good/making a sale. This agreement is legally binding for both the purchaser and the seller. The agreement is contingent on being paid back at the date agreed and receiving the items that were intended to be paid for.  
7 0
4 years ago
Read 2 more answers
Employers are least likely to help pay for at least a portion of which of the following employment benefits?
Liono4ka [1.6K]
Where are the following benefits?
6 0
3 years ago
A difference in quantity of materials used on two comparable jobs may be caused by a.employee carelessness b.poor quality materi
Elodia [21]

Answer: d.All of these choices are correct.

Explanation:

All the above can result in different quantities of materials being used for comparable jobs.

Employee Carelessness can cause more material to be used if they fail to adequately measure the Requirements of a job. If they are also careless in the usage of the material, there will be wastage and therefore a larger use of materials.

Poor Quality Materials can also result in different quantities being used because for instance, more material could be required to do something that a stronger material could have easily done.

Inadequately trained Employees is a major reason for Material Wastage. If employees are not trained by seasoned people who know how to reduce wastage, that knowledge could take time to come to them. If they were adequately trained however, they can master the tricks on wastage avoidance and limit discrepancies in the amount of materials used per comparable jobs.

7 0
3 years ago
Howard plans on leaving $625 in his savings account for 19 months. The account pays 5.7% simple interest annually. what will be
zysi [14]
His balance will be $660.63
6 0
4 years ago
Other questions:
  • Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies m
    13·1 answer
  • The following information is taken from the production budget for the first quarter: Beginning inventory in units 600 Sales budg
    6·1 answer
  • What is the total cost to conduct a market research survey with a $500 base fee plus $3 per question and $1.25 per person survey
    9·2 answers
  • Best Value Outlet recently announced that it intends to pay dividends of $0.40, $0.60, $0.75, and $1.00 per share over the next
    7·1 answer
  • Which of the following activities are either not accounted for or are measured inaccurately in calculations of GDP for the Unite
    9·1 answer
  • The following data were taken from the accounting records of the Mixing Department of Kappa Corporation which uses the weighted-
    10·1 answer
  • The Sheridan Acres Inn is trying to determine its break-even point during its off-peak season. The inn has 50 rooms that it rent
    5·1 answer
  • Outsourcing: Question 19 options: Transfers traditional internal activities to outside vendors. Utilizes the efficiency which co
    7·1 answer
  • Discuss the negative effect of technology on work-life balance
    9·1 answer
  • A loan processor who is not required to perform her duties at the direction of or subject to the supervision and instruction of
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!