Question $11$

$0\mathrm{.}8$

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Kern's Kernel Corporation needs to raise $$300,000$ of additional capital to purchase a grain silo. The corporation could borrow $$300,000$ from a local bank or it could issue additional shares of common stock to a handful of additional investors in exchange for $$300,000.$

Jen, the company's CFO, is considering relative advantages and disadvantages of both options. She concluded that one option could be more risky than the other because $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ payments to a lender are $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ whereas the payment of $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ to stockholders is$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

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Question $11$

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Option $31,$ selected.

Question $11$

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