Social Studies, 19.10.2019 11:30, theflash077

Why do firms generally prefer to borrow funds to obtain long-term financing rather than issue shares of stock?

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Business, 28.06.2019 21:20, roseemariehunter12

Large, highly-rated firms sometimes sell commercial paper: to borrow funds at a lower rate than through a bank.to borrow funds when they cannot obtain a loan from a bank.because they can't borrow anywhere else.to improve their credit rating.

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Business, 25.09.2019 13:30, annekacoleman

Jackson plumbing, a medium-sized company, wants to guarantee that it can obtain short-term funds to meet unexpected future cash needs. which of the following strategies would best meet the financing needs of jackson plumbing? financial managers at jackson plumbing should: a issue commercial paper as needed. b request that the firm's board of directors approve an issue of additional shares of common stock. c arrange for a revolving credit agreement with jackson plumbing's commercial bank. d eliminate credit sales to improve their cash inflows and reduce the firm's investment in accounts receivable. lending institutions may offer a borrower a percentage of the value of the borrower's accounts receivable so the borrowing firm can continue to operate while it waits to collect on its credit sales. this process is called a establishing a line of credit b inventory valuation c pledging d revolving credit susan started a cake decorating business that failed. she is convinced that she lacked the necessary funds to promote her business and get it off the ground. susan experienced: a inadequate financial control. b undervalued inventory. c undercapitalization. d a cash flow issue. a(n) is responsible for verifying that the accounting procedures within a firm are consistent with established accounting principles. a managerial accountant b tax accountant c bookkeeper d internal auditor when liberty industries renegotiated their loan agreement, they borrowed an additional $2 million. the new loan requires liberty to repay the new amount in nine months. liberty's activity represents financing. a equity b debt c revitalized d secured chunky chicken, inc. announced yesterday that it plans to issue $100 million in debenture bonds to fund the expansion of its fast food chain of restaurants. in financial terms, this means: a the corporation will borrow $100 million worth of long-term financing. the bond issue will not carry any collateral. b the corporation will issue $100 million worth of equity financing. the bond issue will be backed by the property and buildings purchased with the funds. c the corporation will borrow $100 million worth of long-term financing. the issue will be backed by the property and buildings purchased with the funds. d the corporation will issue $100 million worth of interest free bonds. financiers will be paid from the revenues created by the individual franchises. carlos is the manager of oh! canada sporting goods. during the past six months, his cash expenditures have exceeded his cash receipts. oh! canada is suffering from a(n) problem. a accounting b undercapitalization c cash flow d exchange rate to reduce the time and expense of collecting their accounts receivable, some firms: a extend credit to new customers. b offer extended payment plans to existing customers. c adopt a just-in-time inventory policy. d accept bank credit cards. if a company secures a three year bank loan, it is considered a short-term financing b asset funding c liability funding d long-term financing

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Business, 18.10.2019 06:10, 4Tris

Which of the following best explains why a firm that needs to borrow money would borrow at long-term rates when short-terms rates are lower than long-term rates? the use of short-term financing over long-term financing for a long-term project will increase the risk of the firm. the firm’s interest payments will be the same whether it uses short-term or long-term financing, so it is essentially indifferent to which type of financing it uses. a firm will only borrow at short-term rates when the yield curve is downward-sloping.

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Why do firms generally prefer to borrow funds to obtain long-term financing rather than issue shares...

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