XYZ Corporation plans to open a manufacturing plant in China, but the company has not retained any of its yearly profits for this purpose. How will XYZ Corporation likely raise the money to finance its offshore expansion?
a. Selling bonds to institutional investors
b. Selling bonds to municipal households
c. Issuing Treasury bills to stakeholders
d. Encouraging momentum selling of its stock
a. Selling bonds to institutional investors
XYZ Corporation will likely raise the money to finance its offshore expansion by selling bonds to institutional investors.
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When an economist talks of scarcity, the economist is referring to the
A) ability of society to employ all of its resources. B) ability of society to consume all that it produces. C) inability of society to satisfy all human wants because of limited resources. D) ability of society to continually make technological breakthroughs and increase production.
The short-run supply curve for a perfectly competitive firm is its marginal cost curve above the minimum point on the
A) average fixed cost curve. B) average variable cost curve. C) average total cost curve. D) demand curve.
What are the typical types of risk faced by a firm?
What will be an ideal response?
In a competitive industry buffeted by demand supply shocks, prices increase and decrease, but economic profits tend to revert to zero. Hence, profits are exhibiting
a. Above-average return b. Positive earnings c. Mean reversion d. None of the above