Dowty Incorporated, a telecommunications equipment manufacturer, has a debt to total assets ratio of 55%, while competing

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Dowty Incorporated, a telecommunications equipment manufacturer, has a debt to total assets ratio of 55%, while competing companies of similar size operating in the same industry have an average debt to total assets ratio of 62%. Dowty is planning to expand its operations by adding two new plants next year.
(a) Discuss three sources for financing the expansion.
(b) Recommend the most suitable source of financing for Dowty, based on the information provided.
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Intermediate Accounting

ISBN: 978-1118300855

10th Canadian Edition Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

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