Firms that need cash for long-term purposes, such as acquiring buildings and equipment or financing a business acquisition, and that wish to use debt as a means of obtaining cash, will

Question

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Firms that need cash for long-term purposes and wish to use debt as a means of obtaining cash should issue bonds in the capital markets. Issuing common stock, preferred stock, or paid-in-capital would involve equity financing, which is not a suitable option in this scenario.

Firms That Need Cash for Long-Term Purposes, Such as Acquiring