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answer please It Further CEG Capital Inc. is a large holding company that uses long-term debt extensively to fund its operations. At December 31, the
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It Further CEG Capital Inc. is a large holding company that uses long-term debt extensively to fund its operations. At December 31, the company reported total assets of $100 million, total debt of $55 million, and total equity of $45 million. In January, the company issued $11 billion in long-tem bonds to investors at par value. This was the largest debt issuance in the company's history, and it significantly increased the company's ratio of total debt to total equity. Five days after the debt issuance, CEG filed legal documents to prepare for an additional $50 billion long-term bond issue. As a result of this filing, the price of the $11 billion in bonds that the company issued earlier in the week dropped to 94 because of the increased risk associated with the company's debt. The investors in the original $11 billion bond issuance were not informed of the company's plans to issue additional debt so quickly after the initial bond issue. TIF 11-1 Ethics in Action ETHICS Did CEG Capital act unethically by not disclosing to initial bond investors its immedi- ate plans to issue an additional $50 billion debt offering? TIF 11-2 Team Activity In teams, select a public company that interests you. Obtain the company's most recent annual report on Form 10-K. The Form 10-K is a company's annually required filing with the Securities WORLD and Exchange Commission (SEC) It includoStep by Step Solution
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