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Mek Co. has an Annual Net Income of $1,000,000 M; they also have 500,000 common shares outstanding. A Mr. Flanders owns 55% of the shares

Mek Co. has an Annual Net Income of $1,000,000 M; they also have 500,000 common shares outstanding. A Mr. Flanders owns 55% of the shares in Mek.

Answer the following questions (20 marks):

  1. What does Mr. Flanders have over the company?
  2. If Mek would like to raise some cash, say for expansion, what two main options would he consider?
  3. What factors might he pay heavy attention to with each option?
  4. Which option would you recommend?

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