High Sky, Inc., a hot-air balloon manufacturing firm, currently has the following simplified balance sheet: Assets Liabilities and Capital Total Assets $ 1,100,000 Bonds (10% interest) $ 600,000 Common Stock at par ($3), 100,000 shares outstanding $ 300,000 Contributed capital in excess of par $ 100,000 Retained earnings $ 100,000 Total libalities and capital $ 1,100,000 The company is planning an expansion that is expected to cost $600,000. The expansion can be financed with new equity (sold to net the company $4 per share) or with the sale of new bonds at an interest rate of 11 percent. (The firm