Considering the current conditions in the financial markets, assume Bath & Body Work needs to raise a large amount of cash. Compare the choices of raising these funds in the capital market (selling new shares of stock) versus the bond market (debt financing) and make a decision as to what is best and why. Also, consider ethical implications of financial reporting and how it relates to acquiring additional investors and accessing markets for additional capital. Consider the impact on the following on your choice:

2. The company's existing capital structure
4. The company's current market capitalization
6. The company's weighted average cost of capital
8. The company's degree of operating, financial and combined leverage

Answer rating: 100% (QA)

When comparing the options of raising funds in the capital market selling new shares of stock versus the bond market debt financing for Bath Body Works several factors need to be considered 1 Existing ... View the full answer