Question

Koffman Corporation is trying to raise capital. What method would be the least risky to raise capital if it has a less-than-f
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Ans:- The least risky to raise capital if it has a less-than-favorable credit rating will be stock issuance since a credit rating won't negatively affect Koffman's ability to sell stocks.

Less credit rating for a firm makes it moreg difficult to sell bonds than stocks. credit ratings do not hamper the firm's stock selling ability that much as compared to bonds.

Therefore option (c) is the right answer.

Add a comment
Know the answer?
Add Answer to:
Koffman Corporation is trying to raise capital. What method would be the least risky to raise...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Donald Lennon is the president, founder, and majority owner of Wichita Medical Corporation, an emerging medical...

    Donald Lennon is the president, founder, and majority owner of Wichita Medical Corporation, an emerging medical technology products company. Wichita is in dire need of additional capital to keep operating and to bring several promising products to final development, testing, and production. Donald, as owner of 51% of the outstanding stock, manages the company's operations. He places heavy emphasis on research and development and long-term growth. The other principal stockholder is Nina Friendly who, as a nonemployee investor, owns 40%...

  • Essay Jim Marks is the president, founder and majority owner of Galena Medical Corporation, an emerging...

    Essay Jim Marks is the president, founder and majority owner of Galena Medical Corporation, an emerging medical technology products company. Galina is in dire need additional capital to keep operating and to bring several promising products 10 final development, testing and production. Jim, as owner of 51% of the outstanding stock, manages the company's operations. He places heavy emphasis on research and development and on long term growth. The other principal stockholder is Jill Hutton, who, as a nonemployee investor,...

  • The capital markets and the ability to raise funds for corporate uses are essential to the...

    The capital markets and the ability to raise funds for corporate uses are essential to the U.S. economic systems. For this assignment, imagine that you have $25,000 to invest in U.S. companies. You are buying used stock. The company got the money when it issued the stock originally. You will be buying it from an existing owner. You are investing, or buying the stock, because you believe the company will make money and pay you a dividend in cash. Each...

  • These 3 questions are Essay 3 paragraphs (1 paragraph is for one question, Paragraph should contain...

    These 3 questions are Essay 3 paragraphs (1 paragraph is for one question, Paragraph should contain from 5-6 sentences) Please do not answer with short answers. Minimum 5 sentences for each question. Thanks. Essay Jim Marks is the president, founder and majority owner of Galena Medical Corporation, an emerging medical technology products company. Galina is in dire need of additional capital to keep operating and to bring several promising products to final development, testing and production. Jim, as owner of...

  • Capital Structure Theory Modern capital structure theory began in 1958 when Professors Modigliani and Miller (MM)...

    Capital Structure Theory Modern capital structure theory began in 1958 when Professors Modigliani and Miller (MM) published a paper that proved under a restrictive set of assumptions that a firm's value is unaffected by its capital structure. By indicating the conditions under which capital structure is irrelevant, they provided dues about what is required to make capital structure relevant and impact a firm's value. In 1963 they wrote a paper that included the impact of corporate taxes on capital structure....

  • Capital Structure Theory Modern capital structure theory began in 1958 when Professors Modigliani and Miller (MM)...

    Capital Structure Theory Modern capital structure theory began in 1958 when Professors Modigliani and Miller (MM) published a paper that proved under a restrictive set of assumptions that a firm's value is unaffected by its capital structure. By indicating the conditions under which capital structure is irrelevant, they provided dues about what is required to make capital structure relevant and impact a firm's value. In 1963 they wrote a paper that included the impact of corporate taxes on capital structure....

  • The essay must be a minimum of three paragraphs   Follow the Instruction. Do not answer with...

    The essay must be a minimum of three paragraphs   Follow the Instruction. Do not answer with short answers!!! Jim Marks is the president, founder and majority owner of Galena Medical Corporation, an emerging medical technology products company. Galina is in dire need of additional capital to keep operating and to bring several promising products to final development, testing and production. Jim, as owner of 51°f of the outstanding stock, manages the company’s operations. He places heavy emphasis on research and...

  • Question No: 1 The overall (weighted average) cost of capital is composed of a weighted average of : a)The cost of common equity and the cost of debt b)The cost of common equity and the cost of preferred stock c)The cost of preferred stock and the cost o

    Question No: 1The overall (weighted average) cost of capital is composed of a weighted average of :a)The cost of common equity and the cost of debtb)The cost of common equity and the cost of preferred stockc)The cost of preferred stock and the cost of debtd)The cost of common equity, the cost of preferred stock, and the cost of debtQuestion No: 2Which of the following is a characteristic of preferred stock?a)These stocks have not stated liquidating valueb)Dividends on these stocks can...

  • Question 1 (1 point) Saved In a world without deposit insurance we would expect to see...

    Question 1 (1 point) Saved In a world without deposit insurance we would expect to see all the following EXCEPT: Question 1 options: frequent bank runs. the public being reluctant to deposit in banks. people keeping more money in cookie jars and under the mattress. Question 2 (1 point) Saved All the following are current regulations on banks, EXCEPT: Question 2 options: Banks need to show their books to on-site examiners. Banks need to hold a certain amount of capital...

  • Which of the following statements is CORRECT? a. Relative to sole proprietorships, corporations generally face fewer...

    Which of the following statements is CORRECT? a. Relative to sole proprietorships, corporations generally face fewer regulations, and they also find it easier to raise capital. Stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. There is no good reason to expect a firm's stockholders and bondholders to react differently to the types of assets in which it C. invests. Bondholders should...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT