What is the predominant source of financing for positive NPV projects by U.S.nonfinancial corporations?
A)Preferred stock
B)Internally-generated funds
C)Common stock
D)Publicly-issued debt
E)Privately-issued debt

Question

Quizplus · Accepted Answer

The predominant source of financing for positive NPV projects by U.S. nonfinancial corporations is internally-generated funds. This is because these funds do not come with any interest or dividend payments, and there is no need to share any control or decision-making authority with external investors. Additionally, relying on internally-generated funds reduces the risk of bankruptcy due to excessive debt levels, which can negatively impact the company's creditworthiness and ability to access financing in the future.

What Is the Predominant Source of Financing for Positive NPV