Portable Pet Care, a mobile veterinary service, wants to expand. After thoroughly reviewing the possibility of expansion, Portable Pet Care plans to offer a similar service in the Indianapolis metropolitan area as it does in its original Columbus, Ohio area. This will require a large capital expenditure. Due to the nature of this project, the firm will consider only equity financing.

Question

Quizplus · Accepted Answer

Although a project of this nature is considered a capital expenditure, it may be financed in one of three ways: with debt financing (long-term borrowing); with equity financing (the sale of private or public offering of stock), or with retained earnings.

Portable Pet Care, a Mobile Veterinary Service, Wants to Expand