A small-scale, publicly traded firm specializing on non-hazardous waste management considers a major acquisition in the Midwestern U.S. The acquisition enhances its cost position, help the business compete in a competitive sector, and can provide entry into the area. The company has a longstanding policy to avoid long term debt and until now has formed a string of small acquisitions using just internal funding.
Several business managers differ and prefer that common stock is issued by the firm. Pupils must analyze the costs of issuing either common stock or a bond before making a final recommendation for financing the acquisition.
PUBLICATION DATE: October 22, 2012 PRODUCT #: 913530-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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