As a financial manager for a very profitable manufacturer of specialty steel, Kurt has been asked to investigate sources of long-term funds to finance the construction of a new facility. Kurt would prefer a funding source that does not require interest payments or involve major underwriting fees. Kurt will consider using retained earnings to fund the construction project.

Question

Quizplus · Accepted Answer

Kurt prefers a funding source that does not require interest payments or involve major underwriting fees, and retained earnings can be used to fund the construction project without incurring any interest payments or underwriting fees, making it a viable option.

As a Financial Manager for a Very Profitable Manufacturer of Specialty