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Sagehill Inc. currently has 750,000 shares of common stock outstanding. Sage Hill Inc. is considering these two alternatives to finance its construction of a new

Sagehill Inc. currently has 750,000 shares of common stock outstanding. Sage Hill Inc. is considering these two alternatives to finance its construction of a new $1.85 million plant: 1. Issuance of 185,000 shares of common stock at the market price of $10 a share. 2. Issuance of 1.85 million, 8% bonds at face value.

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