Discuss the wisdom of issuing 20 year bonds that would move


1) In a time of slow economic growth, high monetary expansion, and low interest rates, discuss the wisdom of issuing 20 year bonds that would move your firm's total debt ratio from 25% to 50%. Assume the funds would be held in short term securities for the immediate future.

2) Both management and investors are always searching for ratios or other numbers to PREDICT what the future of the company will be. Some of those predictors might be Days Sales in Inventory, Days Sales in Receivables, Inventory Turnover, Cash Flow from Operations, and/or the Altman Z score. Prepare an explanation of predictors you would use to watch for developing problems and/or future financial difficulties.

 

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Financial Accounting: Discuss the wisdom of issuing 20 year bonds that would move
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