Managerial Finance

posted by .

If the company opts ( choose) not to expand, what is the implication for the company's future borrowing needs? What are the implications if company does expand?

  • Managerial Finance -

    Wouldn't this greatly depend on future income and profit forecasts with and without expansion? The future borrowing needs depends on capital and income forecasts, it seems to me. Expansion or contraction is just an input in to the capital and income forecasts.

  • Managerial Finance -

    Its borrowing needs will be less if it choses not to expand, and more if it does. How much it needs may need to borrow depends upon other factors as well. Most companies seem to require a line of credit these days, even though they are not expanding, and the unavailability of it is hurting the economy.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Managerial Finance

    If the company opts ( choose) not to expand, what is the implication for the company's future borrowing needs?
  2. math

    company A:1/5 company B:4/25 company C:2/5 company D:3/20 Question:What fraction of the U.S sales did Company C and Company B hold together?
  3. math

    company A:1/5 company B:4/25 company C:2/5 company D:3/20 How much greater was the fraction of the marker of Company A than of Company D?
  4. math

    company A:1/5 company B:4/25 company C:2/5 company D:3/20 how much more than company A's fraction of the market did company C have?
  5. week 7

    Your company has had a very profitable year and is looking to expand their employee benefits. As an employee in the benefits department, you have been asked to prepare a report to persuade your company administrators that adding tuition …
  6. XCOM/285

    Your company has had a very profitable year and is looking to expand their employee benefits. As an employee in the benefits department, you have been asked to prepare a report to persuade your company administrators that adding tuition …
  7. Finance

    When a company’s executives purchase securities of their company and disclose it to the public: A) It is considered illegal B) This strategy is considered a Flight to Quality C) The market does not react D) It is generally seen as …
  8. Managerial Finance

    East Coast Yachts uses a small percentage of preferred stock as a source of financing. In calculating the ratios for the company, should preferred stock be included as part of the company’s total equity
  9. Math

    A company is planning to expand its business in a few years. New plant construction costs are estimated to be $4.75 per square foot. The company invests $850,000 today at 6% compounded quarterly/ a) How many square feet could be built …
  10. mth 156

    a company needs $55,000 in 7 years for a new addition. To meet this goal, the company needs to deposit money in an acct today that pays 5% annual interest compounded quarterly. What amount should the company invest to total $55,000 …

More Similar Questions