Mega Computer needs a large amount of long-term financing for a long period of time. The best choice is most likely
A) loans.
B) preferred stock.
C) common stock.
D) commercial paper.
E) bonds.

Question

Quizplus · Accepted Answer

Bonds are a form of long-term financing that allows Mega Computer to borrow a large amount of money for a fixed period of time at a fixed rate. This form of financing provides more financial stability and predictability than other options like loans or commercial paper. Additionally, buyers of bonds are considered creditors rather than owners, so Mega Computer can retain control over the company without diluting ownership through the sale of stock. Preferred stock and common stock are both equity financing options and can be more expensive than debt financing, making them less attractive for a company seeking a large amount of long-term financing.

Mega Computer Needs a Large Amount of Long-Term Financing for a Long