Bristol-Myers Squibb, a company with single-A investment credit ratings, recently sold $2 billion of bonds that paid 3.35 percent interest. What are the pro’s and con’s of this activity, compared to issuing stock or borrowing money from a bank in terms of raising capital?
Answer to relevant QuestionsUnder what conditions would Retained Earnings on the Balance Sheet decrease from one year the next? In your own words, list all the steps in developing projected financial statements. The chapter says HP has more $goodwill than the $book value of the firm. Explain what this means, how it could occur, and what can be done about this situation? BellSouth Services is considering putting divisional EFE and IFE matrices online for continual updating. How would this affect strategy evaluation? Do you believe strategic management should be more visible or hidden as a process in a firm? Explain.
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