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CK Tech, a technology company, has had a 20% rate of growth for five consecutive years and has produced steady positive cash flows. The most
- CK Tech, a technology company, has had a 20% rate of growth for five consecutive years and has produced steady positive cash flows. The most recent economic and technology sector indicators show signs of slowing growth. CK Tech recently announced the issuance of bonds totaling 40% of the companys current market cap. What would be a possible reason CK Tech has decided to raise capital this way? Explain why it is or is not an appropriate financing method for this organization?
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