If a company finances an expansion in its production facilities by issuing $6 million in preferred stock,

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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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Engineering Economy

ISBN: 978-0073523439

8th edition

Authors: Leland T. Blank, Anthony Tarquin

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