Explain why the company would probably not issue $1 million, Financial Management

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Refer to the Bulldog battery company's cash budget in Table 18-7.  Explain why the company would probably not issue $1 million worth of new common stock in January to avoid all short-term borrowing during the year.

Common stock financing is long-term financing thus it would probably not be used to meet this short-term financing need.

 

 


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