Company X owns 30 stores in New York, is facing financial distress. Its liabilities are $200 million while its assets are $50 million including $5 million of cash. The company has frequently missed interest payments to banks and bondholders. Recently, the CEO who is also the major owner of the company has decided to use $5 million of cash to open a new department - in all 30 stores.

If you are shareholders of the company, do you or do you not support the CEO's decision? Justify it with 3 points

If you are the bondholders of the company do you or do you not support the CEO's decision? Justify it with 3 points