Marathon Gold Executives Need To Take Finance Courses In light of Marathon Gold's stupid mistake to get a private placements as opposed to debt financing, investors are now paying a price for their Finance Incompetence as the share prices are now approaching "Penny Stock Status".
If they had any financial sense whatsoever, Marathon Gold would focus more on debt financing as interest on debt is tax deductible unlike equity financing or "private placements".
However, focusing on issuing stocks will increase the cost of the Valentine Lake project as a result of higher "Weighted Average Cost of Capital" or in a Finance Context, "Required Rate of Return".
This bad mistake is no wonder why Marathon Gold management and executives should be forced to take a course on Finance, preferably at a university level so they have learn to focus more on debt financing as its cheaper than equity, resulting in lower "Required Rate of Return".