Answered

Westonci.ca offers fast, accurate answers to your questions. Join our community and get the insights you need now. Get accurate and detailed answers to your questions from a dedicated community of experts on our Q&A platform. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.

A company with high ebit is considering pursuing multiple projects next year. which trade-off is involved, and what is the ideal credit rating for the company between aaa, aa, a, and bbb?

Sagot :

dubeyshailja64

A company with high EBIT is considering pursuing multiple projects next year. The trade-off involved will be maximizing the number of projects against a higher credit rating, with an A rating being ideal. Thus the correct answer is D.

What is a trade-off?

The trade-off is referred as a situation when one object gets compromised to gain over another object. This situation comes when decision-making between two goods takes place and one will get selected over the other.

Increasing the number of projects is compromised for a superior credit rating. A strong credit rating won't be enough since more projects will require the business to heavily rely on financing. The A credit rating will be considered.

Therefore, option D is appropriate.

Learn more about trade-off, here:

https://brainly.com/question/10895386

#SPJ1

The complete question is-

A company with high EBIT is considering pursuing multiple projects next year. Which trade-off is involved, and what is the ideal credit rating for the company between AAA, AA, A, and BBB?

Select an answer:

The trade-off is only being able to pursue a few of the projects against a lower credit rating, with an AA rating being ideal.

The trade-off is pursuing more new projects against a lower WACC, with a AAA rating being ideal.

The trade-off is the risk of a credit downgrade against having few new projects, with a BBB rating as ideal.

The trade-off is maximizing the number of projects against a higher credit rating, with an A rating being ideal.

We hope this was helpful. Please come back whenever you need more information or answers to your queries. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.