Munschausen Is a German-Based Appliance Company That Is Preparing to Begin

question 254

Short Answer

Munschausen is a German-based appliance company that is preparing to begin international operations, wherein it plans to open several production facilities and sales centers abroad. The company needs a substantial amount of capital to start its international operations and needs to decide whether it should pursue debt financing by acquiring loans, or whether it can get equity financing from investors.
Which of the following, if true, would strengthen the case for Munschausen's seeking to acquire capital by debt financing?
Munschausen will have very slim profit margins in its international sales.
Munschausen will hire many new salespeople to work internationally.
Munschausen will have a steady stream of revenue from its international sales.
Munschausen will be launching several new product lines soon.
Munschausen will have to specially train its employees to work internationally.

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