A firm is considering replacing its current production facility with a new robotics production facility. As a

Question:

A firm is considering replacing its current production facility with a new robotics production facility. As a result of this move, the firm's fixed costs will increase dramatically. To finance this new project, the firm is considering either issuing or issuing debt. Should the firm consider these two decisions (whether to build the robotics facility and how to finance it) separately? How might the investment decision impact the financing decision?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...