Question

Pujols Industries issued 10 bonds, dated January 1, with a face amount of $48 million is primarily an example of:

a) Debt financing
b) Equity financing
c) Stock options
d) Financial derivatives

Answer 1

Pujols Industries issuing 10 bonds with a face amount of $48 million is an example of debt financing.

Step-by-step explanation:

Pujols Industries issuing 10 bonds with a face amount of $48 million is primarily an example of debt financing. When companies want to raise money for new projects, they often issue bonds directly to investors instead of taking loans from banks. In this case, by issuing bonds, Pujols Industries is borrowing money from investors and committing to make scheduled interest payments and repay the debt at a later date.