Minimum 150 Words

You've owned a hardware company for the last five years. Even during the recession, you have been earning a net profit of 30% on your investment and have been able to pay yourself a reasonable salary. You are feeling so confident that you are considering expanding. You believe that your profit potential can improve greatly if you could expand your product line with newer high-tech equipment You estimate that you will need $1 million for the expansion Explain the financing options in this situation. Would you consider selling bonds if you had to pay 12% interest? Explain why or why not. What financing option would you choose and why