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Discussion Questions- Week 3
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1. If a firm has issued bonds to help finance the company’s expansion,
why would market interest rate changes continue to be a concern for the
company after the sale of bonds?
2. If you had your choice, would you choose equity or debt to finance
your company’s capital requirements? Defend your choice and include
risk concepts.
3. Why is a high break-even point a risk for a company?
Business Homework Solutions
#3257
Equity and Debt financing
1. If a firm has issued bonds to help finance the company's expansion, why would market interest rate changes continue to be a concern for the company after the sale of bonds?
2. If you had your choice, would you choose equity or debt to finance your company's capital requirements? Defend your choice and include risk concepts.
3. Why is a high break-even point a risk for a company?
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