The CFO of a Satellite Radio Company Was Trying to Work

question 156

Multiple Choice

The CFO of a satellite radio company was trying to work his magic today as he solicited another telecommunications/entertainment company to invest in his company in order to prevent bankruptcy. Having refinanced the company less than a year ago, the satellite radio finance manager had a $75 million note coming due today. The current financing arrangement represents

• A) a long-term sale of stock to private investors.
• B) short-term debt financing.
• C) the issuance of long-term bonds.
• D) a leveraged buy-out.

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Definitions:

Grapevine

An informal communication network within an organization or community, known for its speed and efficiency in spreading information or rumors.

Upward Communication

Communication that flows from subordinates to superiors.

Downward Communication

Communication that flows from superiors to subordinates.

Horizontal Communication

The exchange of information, ideas, or messages among individuals or groups at the same level in an organization.