Question: 17.10. Compass Computers has suffered an unexpected loss and is currently having financial difficulties. Explain why Compass may choose not to issue equity to solve

17.10. Compass Computers has suffered an unexpected loss and is currently having financial difficulties.

Explain why Compass may choose not to issue equity to solve its financial problems. If Compass does not issue equity, should it change its product market strategy to account for the firm’s weaker financial health?

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