Discusses the impact on cash constraint

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Question - GBB could issue common shares or preferred shares to finance the acquisition of the machinery.

GBB is a public company with the founding member owning 51% of the common shares currently outstanding (currently there are 4.5 million shares outstanding in total).

The current market price per share is $15.

Provides journal entries for purchase, issuance and all other related entries for 2020.

Calculates current and debt/equity ratios and compares to previous ratio.

Discusses advantages and disadvantages of equity on ratios (addressing all concerns of the users).

Discusses the impact on cash constraint.

Discusses impact to corporate structure and over all leverage.

Reference no: EM133064526

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