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Duke & Duke, Inc. (owned predominantly by two shareholders) operate a chain of automobile repair shops in West Virginia. In order to remain competitive with

Duke & Duke, Inc. (owned predominantly by two shareholders) operate a chain of automobile repair shops in West Virginia. In order to remain competitive with the new Wal Mart's that were recently built around the state Duke & Duke believe they need to acquire some new equipment and renovate all of their locations so they can offer more services and pesent a better image to potential clients. Duke & Duke, however, does not have much cash to acquire the approximate $3,870,000 it will take to upgrade their equipment and facilities.

Which of the following methods would Duke & Duke need to consider if they are very concerned about losing ownership in their own company and obligating themselves to perpetual payments for many years to come?

A.

Have a really, really big bake sale.

B.

Raise the funds by issuing preferred stock

C.

Raise the funds by issuing voting common stock

D.

None of the other answers

E.

Raise the funds by issuing bonds

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