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Paying back the debt taken than using it for any

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paying back the debt taken than using it for any other purpose. Thus, the futureearnings of the company will reduce because it may not have sufficient cashflow tocarryout capital project.(Eric B 2018)
How will new stockholders change the management of the company?
7CORPORATE BOND AND IPO FINANCING OPTION FOR CONSTANTINE’S GROCERYcompany will change.The new stockholders can change the management if they acquire majority stake inthe company and they can also influence the decisions of the company as they willbe part of the AGMs and will have the internal information of the company.CONCLUSIONOne can conclude that the decision of the best financing option will depend on what is most important tothe company if the company wants more cash injection into the business for future growth anddevelopment going common stock may be a good option but if the founder values their control over thebusiness and will not want share that corporate bond issuing may be the best option. Although both optionswill provide the initial cash for theirmuch needed capital to maintain its current businessoperations and to allow the possibility of growthReferencesEric B The Advantages of Issuing Common Stock vs. Long Term DebtRetrieved October 15, 2018, fromC. (n.d.). IPO Process - A Guide to the Steps in Initial Public Offerings (IPOs). Retrieved October 15,2018, from SEC. The Law that governs security industry. Retrieved October 15, 2018, from
8CORPORATE BOND AND IPO FINANCING OPTION FOR CONSTANTINE’S GROCERYRSM US LLP.A Guide to going Public Offerings (IPOs). Retrieved October 15, 2018, fromThe Legal Environment and Foundations for Business Law (2012). Licensed under a Creative Commonsby-nc-sa 3.0 (3.0/. Chapter 24 - Legal Aspects of CorporateFinance, with close attention to section 24.4. retrieved 15 October 2018An Introduction to Business (2012). Licensed under a Creative Commons by-nc-sa 3.0(3.0/. Chapter 13 - Managing Financial Resources,withclose attention to section 13.6. retrieved 15 October 2018
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