Nowhere Man Corporation is a corporate dance studio. It is a popular investment with investors between the

Question:

Nowhere Man is a corporate dance studio. It is a popular investment with investors between the ages of 20 and 30. Nowhere Man has a dilemma. It needs money to expand its business to cash in on its popularity. However, management is not sure whether to sell stock in the company or to sell corporate bonds. Nowhere Man has $100,000 in liabilities and 1,000,000 authorized shares of of which 100,000 shares are issued. It has a bid of $1,000,000 to build the additional location. Each group of students represents the board of directors. Discuss whether the company should sell stock or bonds. What price would it need to get for each share? How much should it sell in bonds? What bond characteristics would be the best for the company?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...