As a fourth alternative, you suggest that the company borrow the money from a financial institution instead of issuing either bonds or stock. Conner and Martin of course turn the question right back to you, and ask you to summarize the advantages of borrowing in this fashion compared to issuing bonds. Write a memo describing the advantages and disadvantages of each method of financing. As a fourth alternative, you suggest that the company borrow the money from a financial institution instead of issuing either bonds or stock. Conner and Martin of course turn the question right back to you, and ask you to summarize the advantages of borrowing in this fashion compared to issuing bonds. Write a memo describing the advantages and disadvantages of each method of financing.

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Originally Posted by faizur__rahman

As a fourth alternative, you suggest that the company borrow the money from a financial institution instead of issuing either bonds or stock. Conner and Martin of course turn the question right back to you, and ask you to summarize the advantages of borrowing in this fashion compared to issuing bonds. Write a memo describing the advantages and disadvantages of each method of financing. As a fourth alternative, you suggest that the company borrow the money from a financial institution instead of issuing either bonds or stock. Conner and Martin of course turn the question right back to you, and ask you to summarize the advantages of borrowing in this fashion compared to issuing bonds. Write a memo describing the advantages and disadvantages of each method of financing.

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This is clearly your homework... so what do you think the answer is and why?

I say read the text and develop the arguments, repeat them if it helps you