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Unformatted text preview: b. Before settling on these target ranges, what other factors should Bixtons chief financial officer consider? Ability to use fully non-interest tax credits and debt management considerations such as issuance costs. The CFO should also consider that the firms R&D is an intangible asset and that lenders may not be willing to loan the same percentage of debt to Bixton as to its competitors. c. Before deciding whether the target ranges are really appropriate for Bixton in its current financial situation, what key issues specific to Bixton must the chief financial officer resolve? The CFO needs to consider R&D and foreign tax credits. The additional tax shield from additional debt may not be valuable when R&D and foreign tax credits are taken into consideration....
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- Spring '12