Which of these statements is most accurate with respect to the use of debt by a start-up
Question:
Which of these statements is most accurate with respect to the use of debt by a start-up fashion retailer with negative cash flow and uncertain revenue prospects?
A. Debt financing will be unavailable or very costly.
B. The company will prefer to use equity rather than debt given its uncertain cash flow outlook.
C. Both A and B.
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Related Book For
Corporate Finance Workbook Economic Foundations And Financial Modeling
ISBN: 9781119743811
3rd Edition
Authors: CFA Institute, Michelle R. Clayman, Martin S. Fridson, George H. Troughton
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