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Which scenario would be the best choice for a company looking to increase capacity and will yield the highest ROI in their first year of production?

Which of these scenarios would be the best choice for a company looking to increase capacity and will yield the highest ROI in their first year of production?

a. Buy 100 units of capacity. Finance the $3,400 purchase entirely with a new bond.
b. Buy 200 units of capacity. Finance the $6,800 purchase entirely with a new bond.
c. Buy 100 units of capacity. Finance the $3,400 purchase entirely with a stock issue.
d. Buy 200 units of capacity. Finance the $6,800 purchase entirely with a stock issue.

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Since ROI = net income / equity, the firm need to limit the amount of equity investment in order to ...

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The solution gives an answer but also explains how to arrive at the answer.

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