The CFO of a well known satellite radio company was trying to work his magic today as he solicited another telecommunications/entertainment company to invest in his company in order to prevent bankruptcy.Having refinanced the company less than a year ago,the satellite radio finance manager had a $75 million note coming due today.The current financing arrangement represents:
A)A long-term sale of stock to private investors
B)Short-term debt financing
C)The issuance of long-term bonds
D)A leveraged buy-out

Question

Quizplus · Accepted Answer

The fact that the CFO is seeking investment to prevent bankruptcy and has a note coming due today suggests that this is a short-term debt financing arrangement.

The CFO of a Well Known Satellite Radio Company Was