Metlock, Inc. is considering these two alternatives to finance its construction of a new $1.28 million plant: (1) Issuance of 128,000 shares of common stock at the market price of $10 per share. (2) Issuance of $1.28 million, 8% bonds at face value. If the income before interest and tax is$1,515,000 for issue stock and issue bond. Calculate expenses from bonds.
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