Case Study Carson Company is a large manufacturing firm in California that was created 20 years ago by the Carson family. It was initially financed with an equity investment by the Carson family and 10 other individuals. Over time, Carson Company has obtained substantial loans from finance companies and commercial bank. The interest rate on loans is tied to market interest rate movement. It has a credit line with a bank in case it suddenly needs additional funds for a temporary period. It has purchased treasury securities that it could sell if it experiences any liquidity problems. Carson Company has assets valued at about s50 million and generates sales of about s100 million per year. Some of its growth is attributed to its acquisitions of other firms. Because of its expectations of a strong US. Economy, Carson plans to grow in the future by expanding its business and by making more acquisition. It expects that it will need substantial long-term financing and plans to borrow additional funds either through loans or by issuing bonds. It is also considering issuing stock to raise funds in the next year. Carson closely monitors conditions in financial markets that could affect its cash inflows and outflows and thereby affect its value.