Since graduation from college, you have worked at Precision Manufacturing, Incorporated, as a financial analyst. You have recently been promoted to the position of senior financial manager, with responsibilities that include capital budgeting decisions and the raising of long-term financing. Therefore, you decide to investigate the various alternatives for raising funds. Your goal is to make sure that the benefits from undertaking long-term projects are greater than the costs of raising the long-term funds needed to finance those projects. With this goal in mind, you decide to answer the following questions.

What should managers consider when making the decision whether to finance internally or externally

Answer rating: 100% (QA)

The manager should co... View the full answer