A firm can raise up to 700 million for investment from a

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A firm can raise up to $700 million for investment from a mixture of debt, preferred stock and retained equity. Above $700 million, the firm must issue new common stock. Assuming that debt costs and preferred stock costs remain unchanged, the marginal cost of capital for amounts up to $700 million will be the marginal cost of capital for amounts over $700 million?

Reference no: EM13386268

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