Question: An all - equity firm will spend $ 1 , 2 0 0 , 0 0 0 to expand the business. It has $ 1

An all-equity firm will spend $1,200,000 to expand the business. It has $100,000 in cash, can borrow up to $900,000, and can issue up to $1,000,000 in new equity. If the firm applies the pecking-order theory of capital structure, what percentage of the expansion will be financed with debt? Multiple Choice 8%75%67%17%97%

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