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An all-equity firm will spend $1,750,000 to expand the business. It has $100,000 in cash, can borrow up to $850,000, and can issue up to

An all-equity firm will spend $1,750,000 to expand the business. It has $100,000 in cash, can borrow up to $850,000, and can issue up to $1,100,000 in new equity. If the firm applies the pecking order theory of capital structure, what percentage of the expansion will be financed with debt?

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