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Capital Structure: Suppose that TSLA initiates an investment project costing $100 million. TSLA has $70 million internal funding (cash), and can raise $40 million in

Capital Structure:Suppose that TSLA initiates an investment project costing $100 million. TSLA has $70 million internal funding (cash), and can raise $40 million in debt and $10 million in equity. Based on pecking order theory, what percent of this investment is to be financed by debt?

Question 5 options:

50.00%

30.00%

40.00%

0.00%

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