Learning Goal: I’m working on a business discussion question and need the explanation and answer to help me learn.
Assume you work at a medium-sized company that produces small kitchen appliances such as handheld blenders and similar items. Your products are very popular and in high demand. The CEO of your company comes to you and asks you whether it would be worthwhile investing a significant amount of money in a new production line that will significantly increase your output. In order to finance such an expansion, the company would have to take out significant loans that would increase its debt-equity ratio from 2 to 3. What factors would you consider when you give the CEO your answer?
Must be 2 paragraphs, in-text citations and references with no plagiarism
