Answer:
No, the company should seek other alternatives in order to raise capital, e.g. private equity investors.
Explanation:
Bonds are the cheapest way to raise capital, but they also require the company to pay some type of annual coupon. If the company hasn't been able to make a profit yet, where will it get the money in order to pay the coupons. It would be basically a Ponzi scheme since the company would have to use the proceeds from the bond issuance in order to pay interests, but what happens when they ran out of money?
Profitability is termed as the tool that measures the profit of the organization in relation to the expenses. It is the most efficient tool for the realization of profit. This tool aids the firm to cut down the expenses and generate more profit by selling the goods and services in the market.
No, the company should seek other alternatives in order to raise capital, e.g. private equity investors.
Bonds are referred to as the cheapest way to raise capital for the firm, but they also require the company to pay some type of annual coupon. If the company hasn't been able to make a profit yet, where will it get the money in order to pay the coupons.
The evaluation of the profit will be done by the tool profitability in order to maintain the coupon price for the Bonds to raise the funds for the corporate.
To know more about the profitability, refer to the link below:
https://brainly.com/question/19735459
