Question: Question 3 ((2+2+2+2) = 8 marks) Cleanaway Inc. provides services for sustainable waste management solutions. The capital of Cleanaway Inc. are corporate bonds (60%) and
Question 3 ((2+2+2+2) = 8 marks)
Cleanaway Inc. provides services for sustainable waste management solutions. The capital of Cleanaway Inc. are corporate bonds (60%) and equity (40%). The firm would like to consider undertaking the following activities. If you are a bondholder, would you object to any of these activities? Explain your answer for each of the following activities in detail by making reference to the material discussed in the unit.
| Planning to issue new corporate bonds to fund production of blue box that would provide solution for electronic waste management. |
| Planning to distribute part of its profit to shareholders |
| Planning to invest in production of hospital grade solvent that has a very low success rate |
| Not investing in projects related to managing liquid waste because the value addition to the business from these projects are very low. |
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