Management wishes to obtain financing.For each attribute/characteristic listed in 1 through 5, determine which type of financing it describes from management's perspective .
-Credit rating effects

Question

Quizplus · Accepted Answer

Credit rating effects are more directly associated with debt financing because the terms and interest rates of loans or bonds issued by a company can be significantly influenced by its credit rating. A higher credit rating usually results in lower interest costs, while a lower rating can increase borrowing costs. Equity financing, on the other hand, involves selling shares of the company and does not directly impact the company's credit rating.

Management Wishes to Obtain Financing