12. (5 points) As the Chief Internal Accountant at a public corporation, you receive a memo from the CEO of your company, explaining that the company wishes to issue extra shares of Common Stock in order to acquire another company because they don't have enough cash to do so. The CEO wants to know if you have any glaring concerns with this approach. Since the corporation is not large and has a small number of shareholders, you are concerned that the new issuance of shares will diute the ownership of loyal, existing shareholders. How do you respond to the memo