Laurel Street, president of Uvalde Manufacturing Inc. is preparing a proposal to present to her board of directors regarding a planned plant...

Laurel Street, president of Uvalde Manufacturing Inc. is preparing a proposal to present toher board of directors regarding a planned plant expansion that will cost $10 million.At issue is whether the expansion should be financed with debt (a long-term note at FirstNational Bank of Uvalde with an interest rate of 15%) or through the issuance of commonstock (200,000 shares at $50 per share).