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Homework answers / question archive / An example of a firm's financing decision would be: A

An example of a firm's financing decision would be: A

Finance

An example of a firm's financing decision would be:

A. acquiring a competitive firm.

B. determining how much to pay for a specific asset.

C. issuing 10-year versus 20-year bonds.

D. deciding whether or not to increase the price of its products.

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Correct answer: Option C) issuing 10-year versus 20-year bonds.

Explanation:

Financing decisions of a company involve evaluation of the type of source that should be used for raising capital and deciding the maturity period of the same. Financing decisions include whether the common stock should be issued, or debt securities, etc. These decisions help the company in raising capital in a way that the cost is minimum and the profits are maximum.