After a long day on the job at CM 2 - After a long day on the job at CM 2 you are reflecting on how much you have learned about business decision making

After a long day on the job at CM 2 - After a long day on...

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After a long day on the job at CM 2 , you are reflecting on how much you have learned about business decision making through this internship. A good example is CM 2 ’s current plan to raise money through a stock issue rather than a debt issue. You recall from your Intermediate Accounting class that issuing debt imposes a fixed financial obligation on the company, but does not convey ownership to the debt holders. However, if CM 2 issues stock, it gives up some ownership and thus some control. You know how protective Conner and Martin are of the company, and you wonder why they chose to issue stock. You decide to ask them the next day.The next day you ask the management team if you could get some information about the proposed stockissue. You explain that there are trade-offs between issuing stock and issuing debt, and you wonder why they are planning to issue stock. Martin has an immediate response: They do not want to take on any

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