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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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