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1 pts Question 17 This information we used for the questions! Sand Key Development Company has a capital structure conting of $20 million of 10%

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1 pts Question 17 This information we used for the questions! Sand Key Development Company has a capital structure conting of $20 million of 10% debt and 530 million of connon equity. The firm has 500,000 shares of common stock outstanding Sand Key is planning a major expansion and will need to raise $15 million. The firm must decide whether to face the expansion with det or equity. If equity tanding selected, common stock will be sold at 575 per stare debt financing is chosen, 8% coupon bonds will be sold. The firm's marginal tax rate ls 34. Determine the level of operating income at which Sand Key would be indifferent between debt financing and equity firanding 16.300,000 55.150.000 O 25.000 5.000 125.000 1 pts Question 18 This bestions based on the other and Key Dortment Comany cuestion! Sandy Development Coran estimates that it will generate an operating income of $7.25 million. Which financing option should Sand Keywne? Wecon have enough infot www this The notion Ontmount abandon and forension and wind but the two 1 pts Question 17 This information we used for the questions! Sand Key Development Company has a capital structure conting of $20 million of 10% debt and 530 million of connon equity. The firm has 500,000 shares of common stock outstanding Sand Key is planning a major expansion and will need to raise $15 million. The firm must decide whether to face the expansion with det or equity. If equity tanding selected, common stock will be sold at 575 per stare debt financing is chosen, 8% coupon bonds will be sold. The firm's marginal tax rate ls 34. Determine the level of operating income at which Sand Key would be indifferent between debt financing and equity firanding 16.300,000 55.150.000 O 25.000 5.000 125.000 1 pts Question 18 This bestions based on the other and Key Dortment Comany cuestion! Sandy Development Coran estimates that it will generate an operating income of $7.25 million. Which financing option should Sand Keywne? Wecon have enough infot www this The notion Ontmount abandon and forension and wind but the two

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