Management has approved a project that Steven is considering how to fund. He assesses a number of options available and has come up with 2 plans. 1) He can issue new stock, 2) he can issue 5-year, 7% coupon bonds Assume investors demand a return of 7% for all 3 bond types and a return of 14.5% for equity. The firm pays 30% taxes. Discuss the pros and cons of each payment method as it relates to both the firm and the investor