Munschausen is a German-based appliance company that is preparing to begin international operations.It plans to open several production facilities and sales centres abroad.The company needs a substantial amount of capital to start its international operations and needs to decide whether it should pursue debt financing by acquiring loans,or whether it can get equity financing from investors. Which of the following,if true,would weaken the case for Munschausen's seeking to acquire capital by debt financing?
A) Munschausen has several marketing managers with international experience.
B) Munschausen projects rapid growth into international markets that it targets.
C) Munschausen plans to sell its products only in the most advanced economies.
D) Munschausen will grow its business only slowly for its first several years.
E) Munschausen gets its engineering talent from all over the world.
Correct Answer:
Verified
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