Maria Lim, the CFO of Abyss Limited has just completed a training program on Trade-off theory on

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Maria Lim, the CFO of Abyss Limited has just completed a training program on Trade-off theory on capital structure.Maria Lim is excited about Trade-off theory and has decided to issue bonds and use the proceeds to buy back shares.

(i) Based on your understanding of Trade-off theory, why do you think the CFO has decided to issue bonds and use the proceeds to buy back shares?

(ii) Briefly describe 5 issues the CFO should consider before he issues bonds and use the proceeds to buy back shares.

Posted Date: May 19, 2024 01:11 PM

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Maria Lim, the CFO of Abyss Limited has just completed a training program on Trade-off theory on

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