Why is corporate America so dependent on financing. I can understand if they want to buy a building or build a new factory, but for seasonal or cyclical inventory, payroll or supplies?
Somebody with CPA instincts or a real one need to explain to me why if is cheaper to not save (and deposit funds in interest-bearing accounts) in favor of borrowing money and paying interest.
The only explanation I have come up with on my own is that investors and managers are not interested in companies that act prudently, favoring those that act more as just conduits for cash into dividends or, in the case of the latter, salaries and perks.
Help me out here. This has got me beat.