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BE10-5 Shaffer Ltd. is considering two alternatives to finance its construction of a new 2 million plant. (a) Issuance of 200,000 ordinary shares at the
BE10-5 Shaffer Ltd. is considering two alternatives to finance its construction of a new 2 million plant. (a) Issuance of 200,000 ordinary shares at the market price of 10 per share. (b) Issuance of 2 million, 6% bonds at face value. Complete the following table, and indicate which alternative is preferable
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