Question
Assume that the president of Freeman Industries made the following statement the the annual report to shareholders: The founding family and the majority shareholders of
Assume that the president of Freeman Industries made the following statement the the annual report to shareholders:
The founding family and the majority shareholders of the company do not believe in using debt to finance future grow. The founding family learned from hard experiences during prohibition and the Great Depression that debt can cause the loss of flexibility and eventual loss of corporate control. The company will not place itself in that position. As such all future growth will be financed either by stock sales from the public or internally generated resources.
As a shareholder of the company, how would you respond to this decision/policy?
Please make it 3-4 paragraphs in length. Make sure to demonstrate critical thinking and analysis using research and personal work experiences. In addition, include at least one journal article to support. Thank you very much!
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