Walter Manufacturing Company needs to obtain appropriate financing for plant expansion. You would recommend a

Question

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Plant expansion typically involves significant capital expenditures that will take years to repay. Therefore, a long-term business loan would be most appropriate as it provides the necessary funding over an extended period of time, while allowing the company to make regular payments to cover the cost of the expansion. Short-term loans, lines of credit, and revolving credit agreements, may not provide sufficient funding for such a large project and could lead to higher interest rates and financial strain on the company. A one-year loan is also not recommended as it is not long enough to cover the costs of most plant expansions.

Walter Manufacturing Company Needs to Obtain Appropriate Financing for Plant