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Shaffer Inc

question 102

Essay

Shaffer Inc. is considering two alternatives to finance its construction of a new $5 million plant.
(a) Issuance of 500,000 ordinary shares at the market price of $10 per share.
(b) Issuance of $5 million, 8% bonds at par.
Instructions
Complete the following table. Shaffer Inc. is considering two alternatives to finance its construction of a new $5 million plant. (a) Issuance of 500,000 ordinary shares at the market price of $10 per share. (b) Issuance of $5 million, 8% bonds at par. Instructions Complete the following table.


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