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
Two types of climb will be considered. The first is the so-called steady climb. This is a climb in which the all acceleration components (i.e. parallel and perpendicular to the fli


et C(K) denote a European vanilla Call option with strike price K. Assume that all options are identical except for strike price, and strike prices satisfy (K1) What are the no-a


How i can have the FLM if i dont have the Total Assets or Shareholders Equity

i''m doing a project and need to know from start how engineering is structure? like a tree starting from its root

I need the answers of these three problems. 1. How much money would be in a savings count that started with a deposit of $2,000 in year 1 with each succeeding amount increasing by

why shift variant system causes artifacts

A typical investment will have three components of cash flows: • Initial investment • Annual net cash flows • Terminal cash flows. Initial investment Initial investme

Removing Aircraft Engines: To prepare an aircraft for engine removal, check that the aircraft weight and balance will not be adversely effected when the engine is removed. Mos