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Your boss states, Our lenders just told me that we can borrow another $10 million dollars today, but if we do we will have exhausted
Your boss states, Our lenders just told me that we can borrow another $10 million dollars today, but if we do we will have exhausted our debt capacity. Even though borrowing more will allow us to shield more income from taxation, I think we should refrain from more borrowing now. Your bosss statement makes the most sense if she is concerned about:
Maintaining financial flexibility for the future |
Signaling the quality of the firms projects to investors |
Both of the above |
None of the above |
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