... to show some life during this period after interest rates had fallen substantially, and many homeowners were willing to spend extra money to furnish their houses with long-lasting, high-quality furniture. Unlike the distant past, many young couples who were setting up households for the first time were dual wage earners, hence they had higher-than-average incomes. They were not averse to "upscale" consumption, including expensive furniture. To meet the increased demand, Art Deco is undertaking a major capital expansion program. Approximately $40 million in new capital, over and above an expected $6 million of retained earnings, is required for the years 1993 and 1994. Of this $40 million, $20 million has already been borrowed as a long-term loan from a group of five pension funds. The loan agreement, which has already been finalized, calls for Art Deco to raise an additional $20 million through the sale of common stock. Art Deco's ...

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