If a company finances an expansion in its production facilities by issuing $6 million in preferred stock,
Question:
If a company finances an expansion in its production facilities by issuing $6 million in preferred stock, using $3.5 million in retained earnings, and obtaining $15 million via a secured loan, it will have a D-E mix closest to:
(a) 60 –40
(b) 50 –50
(c) 40 –60
(d ) 30 –70
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