As a loan officer at a bank, six months ago you helped Cedar Ltd. arrange a $1.5-million, 20-year mortgage. Cedar Ltd. has just announced an

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As a loan officer at a bank, six months ago you helped Cedar Ltd. arrange a $1.5-million, 20-year mortgage. Cedar Ltd. has just announced an issuance of new shares from which it intends to raise $5 million.
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How do you think this new issuance will affect the bank’s outstanding loan? Identify some positive and negative outcomes.

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