Shares of common stock at the market price

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Reference no: EM13149714

Burden Inc. is considering these two alternatives to finance its construction of a new $2 million plant:

(a) Issuance of 200,000 shares of common stock at the market price of $10 per share.

(b) Issuance of $2 million, 6% bonds at face value.

Reference no: EM13149714

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