Company Analysis: Arrow Electronics Limited
Answer 1) The cost of long-term bond issued by the company has been calculated on the weighted average basis. The calculations follow hereunder: It is considerable that every organization has an appetite for capital. However, while there are many sources to raise capital, it is extremely important to weigh the pros and cons relating with each such source.Below we have discussed some of the likely benefits and limitations of issuing bonds, in relation to Arrow Electronics: -Advantages of issuing bonds: i) Tax deductibility: One of the biggest advantage offered by bonds is the tax deductibility associated with it. It ...