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A company will use 40% debt, 15% preferred equity and 45% common equity for funding a 54,500,000 project. The firm has negotiated bank loan with

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A company will use 40% debt, 15% preferred equity and 45% common equity for funding a 54,500,000 project. The firm has negotiated bank loan with a limit of $500,000. At what level of total funding will the bank loan be exhausted? $125 million $1.40 million $1.45 million $4 million none of these The actual market price of a stock at a given point in time is determined by the marginal investor the stock exchange the Federal Reserve investment banks The dividend on common stock is not guaranteed often not paid not constant all of these Which method of determining equity costs is the most subjective? DCF for new common equity DCF for retained earnings CAPM BYRP Which of the following would support using internally generated funds, according to the text? avoiding the cost of newly issued securities funds generated by the firm involve no opportunity cost the firm is able to hide negative financial results that would be embarrassing to disclose all of the above

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