Question
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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