Your Company needs $10,000,000 for a plant expansion. You can obtain the funds by either...
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Accounting
Your Company needs $10,000,000 for a plant expansion. You can obtain the funds by either issuing common stock or issuing bonds. Common stock is currently trading at $100 per share and the effective rate for bonds is 5%. What factors should be considered in making this decision? What decision will you make?
Does your response change if stock is trading at $10,000 per share and interest rates are 15%?
Your response must be a minimum of 50 words.
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