Imagine you have just assumed the role of CFO at Canova Manufacturing, a prominent company poised for dynamic expansion. The Board of Directors has adamantly conveyed that dilution of the current common stock is not an avenue they are willing to entertain.

In light of this constraint:

1. Delve into the intricate financial and strategic nuances: what underlying considerations, both quantitative and qualitative, should be at the forefront when weighing the decision between issuing debt or preferred stock?

2. Contextualize your analysis within the current economic and market frameworks. How might external variables and emerging trends in the financial sector play a role in shaping your decision?

3. Elevate your perspective to a broader socio-economic lens. Contemplate the potential ripple effects of your decision, considering both micro and macroeconomic implications. How would the choice between debt and preferred stock impact stakeholders ranging from employees and local communities to global financial markets?

 

Please provide references.