Moby Inc is considering two alternatives to finance its construction
Moby Inc. is considering two alternatives to finance its construction of a new $2 million plant.
(a) Issuance of 200,000 shares of common stock at the market price of $10 per share.
(b) Issuance of $2 million, 8% bonds at face value.
Complete the following table, and indicate which alternative ispreferable.
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