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A company needs to raise money for a spending project, and it has been unable to get a loan from a bank. It will therefore

A company needs to raise money for a spending project, and it has been unable to get a loan from a bank. It will therefore issue securities to be sold to investors, but it doesnt want to issue anything that will increase its risk of bankruptcy. What should the company issue?

Answer Choices:

  • Bonds

  • Common Stock

  • Nothing

  • Bonds or Stock, it doesn't matter

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