Asked by Jessica Tufts on Apr 24, 2024

Team-All Pharmaceuticals needs to raise funds to buy new production equipment.The financial manager would probably suggest that his company raise debt capital by

A) using accumulated earnings.
B) selling stock.
C) selling marketable securities.
D) borrowing money from a bank.

Debt Capital

Capital raised through borrowing, typically in the form of loans or bonds, that must be repaid with interest.

Marketable Securities

Low-risk securities with short maturities.

Accumulated Earnings

The total amount of net income a company retains over its existence, not distributed as dividends to shareholders but rather reinvested in the business.

  • Distinguish the numerous financing options available to firms and the ramifications of each choice.