Boston Ceramics is a manufacturer of semiconductors.The company produces such parts as ceramic machine components.The company wants to raise $ 15 million to launch operations in a new country.The company decides to fund the launch entirely by using debt financing.Which of the following observations,if true,would most strengthen this financing decision?
A) Research has revealed that the company has high chance of succeeding in the new market.
B) The company is looking to obtain funding that does not have a specific maturity period.
C) The management feels that the new project is a very risky affair.
D) The management wants to establish discretionary costs for the new project.
E) Tax rates are high in the new market and the company wants to minimize taxable income.
Correct Answer:
Verified
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