1. a) General Environment and investment needs
The general environment that faced MCI at the time of this case surrounds the telecommunication industry. MCIs major competitor was AT&T who had basically a monopoly on the industry at the time. MCI was a young upstart company that was always in search of money. The first few years MCI sold millions of dollars of stock, exhausted the lines of credit they were able to get, and tapped private investors. They also went up against the giant, AT&T to gain full access to the interconnective services. While all this was going on, MCI stock price went below $1, had a negative net worth of $27.5 million, and an operating deficit of $87.3 million. MCI sold more common stock that enabled them to continue to do business.
MCI experienced a significant turn in 1976 when Execunet began producing considerable revenues. It was the first time MCI was able to start paying the interest on their loans and made their first $100,000 in profit.......

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Title: Mci
Approximate Word Count: 1015
Approximate Pages: 5 (250 words per double-spaced page)

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