Munschausen is a German-based appliance company that is preparing to begin international operations, wherein it plans to open several production facilities and sales centers 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 strengthen the case for Munschausen's seeking to acquire capital by equity financing?
Most investors are not currently expressing interest in German companies.
Munschausen is not sure whether its international sales will be profitable.
Munschausen employs some of the best engineers in Germany.
Munschausen will get savings through economies of scale by producing in greater quantity.
Several venture capitalists are interested in investing in Munschausen.

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The Answer of Munschausen is a German-based appliance company that is preparing to begin international operations, wherein it plans to open several production facilities and sales centers 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 strengthen the case for Munschausen's seeking to acquire capital by equity financing?
Most investors are not currently expressing interest in German companies.
Munschausen is not sure whether its international sales will be profitable.
Munschausen employs some of the best engineers in Germany.
Munschausen will get savings through economies of scale by producing in greater quantity.
Several venture capitalists are interested in investing in Munschausen.

Munschausen Is a German-Based Appliance Company That Is Preparing to Begin