Calhoun Computech used internal financing as a source of long-term financing for 80% of its total needs in 2008.The company borrowed an additional 15% of its total needs in the long-term debt markets in 2008.What were Calhoun's net new stock issues, in percentage terms, for 2008?
A)-10%
B)-5%
C)5%
D)10%
E)15%

Question

Quizplus · Accepted Answer

Calhoun used 80% internal financing and 15% debt financing, so it must have used 5% equity financing (100% - 80% - 15% = 5%).

Calhoun Computech Used Internal Financing as a Source of Long-Term