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DeSoto Tools Incorporated is planning to expand production. The expansion will cost $ 4 , 5 0 0 , 0 0 0 , which can

DeSoto Tools Incorporated is planning to expand production. The expansion will cost $4,500,000, which can be financed either by bonds at an interest rate of 8 percent or by selling 90,000 shares of common stock at $50 per share. The current income statement before expansion is as follows:
\table[[\table[[DESOTO TOOLS INCORPORATED],[Income Statement 20X1]]],[Sales,$3,270,000
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