Author Question: Bankston Corporation forecasts that if all of its existing financial policies are adhered to, its ... (Read 35 times)

Triley39 · **on:** Aug 7, 2023

Bankston Corporation forecasts that if all of its existing financial policies are adhered to, its proposed capital budget would be so large that it would have to issue new common stock. Since new stock has a higher cost than retained earnings, Bankston would like to avoid issuing new stock. Which action would reduce its need to issue new common stock?

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increasing the percentage of debt in the target capital structure

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reducing the amount of accounts payable in order to reduce liabilities

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increasing monthly interest payments in order to reduce its store of capital

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increasing the payment of cash dividends for the upcoming year

msgero · **Reply #1 on:** Aug 7, 2023

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