Explain why it's difficult to finance a new business by using a large amount of debt. What concerns would a lender have if they were asked to provide a loan that would represent 90 percent of the company's financing?
Answer to relevant QuestionsDescribe and explain the characteristics that distinguish corporations from partner ships and proprietorships.What is a limited partnership? What is the difference between limited partners and general partners? Why must a limited partnership have at least one general partner?You are a shareholder in a public company. The company is proposing to introduce an employee stock option program for its senior executives. Do you think that this proposal is a good idea? In your response, focus on the ...Why are preferred dividends deducted from net income when calculating earnings per share? Explain. Does earnings per share give an indication of the amount of dividends shareholders can expect to receive? Explain.Why do most companies not pay out 100 percent of their earnings each year in dividends?
Post your question