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Kern's Kernel Corporation needs to raise $300,000 of additional capital to purchase a grain silo....

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Accounting

Kern's Kernel Corporation needs to raise $300,000 of additional capital to purchase a grain silo. The corporation could borrow $300,000 from a local bank or it could issue additional shares of common stock to a handful of additional investors in exchange for $300,000. Jen, the company's CFO, is considering relative advantages and disadvantages of both options. The corporation's existing shareholders are unwilling to sacrifice ownership and control of the enterprise. Therefore, Jen is strongly considering debt financing because a _________________ will not ______________ shares or have voting rights whereas equity investors will have both _____________ and _______________ privileges

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