P-39A Organizing a corporation and issuing stock Montel and Jeremy are opening a paint store. There are no competing paint st the area. They must decide how to organize the business. They anticipate pr $350,000 the first year, with the ability to sell franchises in the future. Although they have enough to start the business now as a partnership, cash flow will be an issue as they grow. They feel the corporate form of operation will be best They seek your advice. ores in rofits of for the long term. Requirements 1. What is the main advantage they gain by selecting a corporate form of business now? 2. Would you recommend they initially issue preferred or common stock? Why 3. If they decide to issue $5 par common stock and anticipate an initial market price of $20 per share, how many shares will they need to issue to raise S2.750.0002