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The XYZ Company is looking for $10 Million in additional capital to finance the construction of a new plant. Its manager is hesitating between raising

The XYZ Company is looking for $10 Million in additional capital to finance the construction of a new plant. Its manager is hesitating between raising the $10 Million in additional long-term debt or in additional common equity. Given 2 reasons (and only2!) why XYZ would prefer financing the plant with long-term debt rather than equity. Explain your answers.

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