Imagine that you work for The XYZ Inc., a business that is a publicly-owned corporation. Plans have been designed for a major business expansion that would take place over the next several years. 

You know your company will need to raise money to finance this project?

• Discuss the project you have planned?
• Are there any advantages to issuing bonds over stocks? Identify one advantage and explain why it is an advantage?
• Are there any advantages to selling stocks instead of issuing bonds? Identify one advantage, and explain why it is an advantage?
• If you owned this corporation, would you want to sell your company stock or issue a bond? Explain your decision?
• Now, imagine you sell the stock. Would you issue common stock or preferred stock? Why?
• As an investor who wishes to make as much profit as possible in the long term, would you want to buy stocks or bonds? Explain your answer?

Answer rating: 100% (QA)

Solution As a publiclyowned corporation The XYZ Inc plans to expand its business in the coming years To finance the project the company will need to r... View the full answer