The first option is obtaining short term financing

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There are two possible financing options for a company. Economy is currently good, but there is a risk of feds decreasing inflation therefore increasing interest rates. The company will need to increase productivity by 50% the next few years to meet demand if the economy continues to be strong. The first option is obtaining short term financing to increase production by 10%. The second option is to issue bonds and increase production by 50%. What is the best option?

Reference no: EM13680188

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