A firm plans to issue $20m of stock. It can issue $10m of debt before it needs to issue debt at a higher rate. The firm
Posted: Wed Jul 06, 2022 6:43 pm
A firm plans to issue $20m of stock. It can issue $10m of debtbefore it needs to issue debt at a higher rate. The firm has nopreferred stock and $7m of retained earnings which it can use forfinancing. If the firm's weights are 50% stock and 50% debt, whichbreakpoint will come first?
Group of answer choices
debt
equity
both occur at the same time
can't tell from the information given
Group of answer choices
debt
equity
both occur at the same time
can't tell from the information given