Which of the Following Is Not a Sensible Reason for a Firm

question 9

Multiple Choice

Which of the following is not a sensible reason for a firm to rely on internal funds?

• A)Equity issues are generally expensive.
• B)A new bond issue may drive the firm's debt ratio too high.
• C)Financial markets interpret the issuance of equity unfavorably.
• D)All of these are sensible reasons to rely on internal funds.

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Definitions:

Mergers And Acquisitions Hindrances

Factors or obstacles that complicate or impede the process of merging or acquiring companies.

Organizational Culture Artifact

physical, tangible, or visible elements of an organizational culture, representing deeper values and norms.

Ceremonies

Events that reinforce the relationship between employees and the organization.

Rituals

Formalized actions and planned routines.