Rose, Inc., of Dallas, Texas, needed to infuse capital into its foreign subsidiaries to support their expansion.

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Rose, Inc., of Dallas, Texas, needed to infuse capital into its foreign subsidiaries to support their expansion. As of August 2001, it planned to issue stock in the United States. However, after the September 11, 2001, terrorist attack, it decided that long-term debt was a cheaper source of capital. Explain how the terrorist attack could have altered the two forms of capital.

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