CARSON CASE STUDY

1. Carson will become a surplus unit because it is operating in the Treasury bill.
Carson has purchased treasury bills, meaning he has enough money to invest and
the firm wants him to sell treasury bills to get liquidity. While Carson has also
taken loans from commercial banks and other financial institutions indicating that
the firm is in deficit.

2. Financial institutions such as banks can provide loans to Carson for expansion as
it is associated with market interest rates. Any reduction in base rates will also
reduce borrowing costs for Carson. As well as to expand themselves to issue and
acquire stocks in the future that require a fair understanding of market integration.

3. To expand its business, it has been noted that it can raise equity and then also
take loans from commercial banks, meaning that a company picked up its first
offering and is a primary market when it advertises Moves to take and acquire
loans from banks. It is doing business in secondary market.

4. The overall market condition will ensure fair value and access to equal
information for all investors. Fair trade practices can be adopted with this
information and this will help Carson to raise substantial amounts of money as
investors will invest in Carson at good prices. Proper transparency will reduce the
risk of risk associated with the project and better decisions can be taken without
consulting financial institutions.

5. Carson have limited access to debt due to its earlier lending and higher debt in
its capital structure. Carson has raised its funds through equities as well as dents
and both have some associated costs. Banks and financial institutions are not ready
to lend further because it can turn into NPAs if the economy is not expected by
Carson.