Expanding debt

 

 

 

 

 

Assume you are the CFO of a medium-sized company and you are advising the CEO on some upcoming strategic initiatives that will have long-term implications. In other words, these are important decisions.

For your initial discussion forum post, address the following questions posed by the CEO:

It appears we may need to raise more capital. Is expanding debt a good idea? Why or why not and should our given assets impact this decision?
In our economic environment, should we issue bonds, common stock, or preferred stock? What would be some pros and cons?
Or should we forego this immediate opportunity and buy back some of our outstanding common stock? What market conditions would make this a good move; what might be some pros and cons?
Should we issue a dividend, or should we retain cash in the company for future opportunities? How might this impact future growth? Are we obligated to pay our shareholders a dividend?

 

 

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