Rexton Pharmaceuticals needs to raise funds to buy new production equipment. The financial manager would probably suggest that his company raise debt capital by .

The financial manager would suggest that his company raise debt capital by borrowing from bank.

Explanation:

Businesses need capital for business operations. Companies borrow money to pay expenses that are related to new inventory, business location, furnishing and equipment etc. Companies borrow money from lending institutions such as credit unions, banks and savings and loans.

Rexton Pharmaceuticals can purchase its new equipment by borrowing from the bank. Borrowing money from the bank ensures that the company has the required capital to purchase the equipment needed and stay afloat until profit is realized.

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