A small growing company needs to raise some new capital (cash) from investors or lenders. The company chooses to raise this capital with a loan from a bank as opposed to issuing some new shares of stock to outside investors. According to your A1 readings, which of the following choices is a valid reason that the company may choose a loan? A. By choosing a loan, this small company will be able to sell their products at a faster rate than if they had chosen a new issue of stocks. B. By choosing a loan, the current shareholders will worry less about default and legal issues if the economy slows down and their product sales subsequently decline. C. By choosing a loan, current stockholders will gain a higher return if the company does well in the future. D. There is really no reason that using a loan or issuing new stock would matter for this company, regardless of what it may think or need. The two options are equally effective ways to raise capital.