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A firm raises capital in 1 million increments with $ 4 0 0 , 0 0 0 in debt and $ 6 0 0 ,
A firm raises capital in million increments with $ in debt and $ in equity. The firm will earn million and distribute in dividends also if the firm issues more than $ in debt, the cost of debt will rise. What are the brake points in the marginal cost of capital schedule for debt and equity?
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