Urban Outfitters wants to raise $25 million to finance the construction of a new store,and the company wishes to raise the funds through direct finance.Which of the following methods could it use?

Question

Quizplus · Accepted Answer

Urban Outfitters could choose to issue $25 million in bonds or issue $25 million in stock to raise funds for the construction of a new store. Both methods are a form of direct finance, where funds are raised directly from investors rather than borrowing from a bank. The choice between issuing bonds or stock will depend on the company's financial situation, goals, and the market conditions at the time of the fundraising. By selecting option D, Urban Outfitters has the flexibility to choose the most suitable method for raising funds.

Urban Outfitters Wants to Raise $25 Million to Finance the Construction