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An all-equity firm will spend $2,000,000 to expand the business. It has $300,000 in cash, can borrow up to $900,000, and can issue up to

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An all-equity firm will spend $2,000,000 to expand the business. It has $300,000 in cash, can borrow up to $900,000, and can issue up to $1,800,000 in new equity. If the firm applies the pecking order theory of capital structure, what percentage of the expansion will be financed with debt? Multiple Choice 40.00% O 10.00% O 85.00% O 45.00% 15.00% O

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