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