=+A9-1 Assume that the president ofIce Mountain Brewery made the following statement in the Annual Analysis offinancing Report to Shareholders.

corporate growth “The founding family and majority shareholders ofthe company do not believe in using debt to finance future growth. The founding family learned from hard experience during Prohibition and the Great Depression that debt can cause loss offlexibility and eventual loss of corporate control. The company will not place itself at such risk. As such, all future growth will be financed either by stock sales to the public or by internally generated resources.”

As a public shareholder ofthis company, how would you respond to this policy?

344 Chapter 9