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Financial Situation: a) The project requires $10 million in capital. b) STV Corporation has $3 million in cash reserves, but they need an additional $7

Financial Situation:

a) The project requires $10 million in capital.

b) STV Corporation has $3 million in cash reserves, but they need an additional $7 million to fund the project.

c) The company's management is deciding between issuing bonds and issuing common shares to raise the needed capital.

Does the company prioritize maintaining a stable income stream, which is typically expected with bond financing, or are they willing to accept equity dilution in exchange for funding, as in issuing common shares?

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