When should stock rather than debt to fund its operations?, Other Engineering

When should stock rather than debt to fund its operations?

There are several reasons for an organization to problem inventory rather than financial obligations. The first is if it considers its inventory price is filled, and it can increase money (on very good terms) by providing inventory. The second is when the tasks for which the money is being brought up may not produce foreseen money moves in the immediate future. A simple example of this is a start-up organization. The owners of online companies generally will problem inventory rather than take on financial obligations because their tasks will probably not produce foreseen money moves, which is needed to make regular financial obligations payments, and also so that the risk of the project is diffused among the organization's investors. A third reason for an organization to increase money by selling value is if it wants to change its debt-to-equity rate. This rate in part decides an organization's connection score. If an organization's connection score is poor because it is experiencing large financial obligations, they may decide to problem value to pay down the financial obligations.

Expertsmind.com offers unique finance assignment help

Posted Date: 3/31/2012 2:06:55 AM | Location : United States







Related Discussions:- When should stock rather than debt to fund its operations?, Assignment Help, Ask Question on When should stock rather than debt to fund its operations?, Get Answer, Expert's Help, When should stock rather than debt to fund its operations? Discussions

Write discussion on When should stock rather than debt to fund its operations?
Your posts are moderated
Related Questions

I want to buy a car. The Msrp is $31,000. I pay $516 per month for five years. The quoted apr is 6.9%. I put down $800. How much did I pay for the car?

Define the aircraft axes & degrees of freedom. Analyse the different maneuvers that can be done by an aircraft.

explain any 2 case tools in software engineering

the royal canadian hillies plan to locate a brandy carryout in the Yukan.A number of saint Bernard dogs ,trained by sergeant preston ,will be used to rescue lost tourists looking f

Q. What is slip? What is slip plane? What are principal if slip planes and slip direction for BCC, FCC and HCP crystal? Ans. X-ray diffraction studies show that the crystalli

Financial Management, Finance This case has been framed in order to test the skills in evaluating a credit request and reaching a correct decision. Perluence International is large

The axial flow compressor: The axial flow compressor is by far the most popular type of compressor and, although it is more difficult to manufacture, it is a more efficient com

Piezoelectric Accelerometer Piezoelectric accelerometers are widely used for vibration measurements due to their low cost and very wide frequency range for which the sensitivit

Sulphuric acid can be made with concentration of 99%. However for different industrial process different concentrations are used. For a specific industrial requirement, 62% H2SO4