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Newlin Electronics is considering additional financing of $ 1 0 , 0 0 0 . It currently has $ 5 0 , 0 0 0

Newlin Electronics is considering additional financing of $10,000. It currently has $50,000 of 12%(annual interest) bonds and 10,000 shares of common stock outstanding. The firm can obtain the financing through a 12%(annual interest) bond issue or through the sale of 1,000 shares of common stock. The firm has a 21% tax rate.

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