3
Koffman Corporation is trying to raise capital. What method would be the LEAST risky to raise capital if it has a less-than-favorable credit rating?
Stock issuance, since a credit rating won't negatively affect Koffman's ability to sell stock.
Bond issuance, since additional debt can provide the company with more leverage.
Bond issuance, since nobody wants to buy shares of a company with a less-than-perfect credit rating.
With low credit, Koffman doesn't have any options for raising capital.
4
Juan wants to be involved in business. He has plenty of capital to invest, but he does not want to be involved in management. He also does not want to w