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A company was planning to issue shares in IPO. Considering the corona situation in the country and 9%-6% interest rate scenario in the banking sector
A company was planning to issue shares in IPO. Considering the corona situation in the country and 9%-6% interest rate scenario in the banking sector of Bangladesh, what is your opinion regarding equity issue at this situation or should they borrow from banking sector at lower interest rate scenario (maximum 9%)? Answer for each scenario below: 5 i) Its debt-equity ratio is less than industry average debt-equity ratio ii) +Its debt-equity ratio is more than industry average debt-equity ratio
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