Financial Situation: a) The project requires $10 million in capital. b) STV Corporation has $3...
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Accounting
Financial Situation: a) The project requires $10 million in capital. b) STV Corporation has $3 million in cash reserves, but they need an additional $7 million to fund the project. c) The company's management is deciding between issuing bonds and issuing common shares to raise the needed capital.
How might potential investors view bonds versus common shares in the context of financing STV Corporation's expansion?
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