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Assume BigData Inc. has no cash on hand, but wants to take on a project that adds $70 million in market value to the firm's

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Assume BigData Inc. has no cash on hand, but wants to take on a project that adds $70 million in market value to the firm's assets, and has an NPV of $30 million. The project requires an initial investment of $40 million. BigData Inc. wants to maintain their 50% Debt to Value Ratio. How much debt should they issue, and how much should they either pay stockholders in dividends or raise from stockholders via new equity issuance? Issue $35 million in debt, issue $5 million of new equity Issue $35 million in debt, pay stockholders $5 million in dividends Issue $20 million in debt, issue $20 million of new equity Issue $40 million in debt, pay stockholders $5 million in dividends

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