Ask Question
22 August, 18:47

The CFO of a satellite radio company was trying to work his magic today as he solicited another telecommunications/entertainment company to invest in his company in order to prevent bankruptcy. Having refinanced the company less than a year ago, the satellite radio finance manager had a $75 million note coming due today. The current financing arrangement represents:

A. short-term debt financing

B. a long-term sale of stock to privat

C. a leveraged buy-out.

D. the issuance of long-term bonds.

+3
Answers (1)
  1. 22 August, 19:07
    0
    A. short-term debt financing

    Explanation:

    Short Term debt Financing is the financing option which needs to paid paid within one year time. In this question the company was refinanced with a loan note by the CFO less than a year ago and it is due today it means this arrangement is for less than 1 year time. So this arrangement is classified as short term debt financing.

    As there is no stock issuance in the scenario, so no sale of stock has been considered at all.

    Management did not purchased the stock of the company to obtain controlling power of the company. So, there is no evidence of Leverage buy-out.

    No bond issuance were made in the scenario,
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The CFO of a satellite radio company was trying to work his magic today as he solicited another telecommunications/entertainment company to ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers