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Marcus owns and manages OLK, which is an all-equity firmIf he works 40 hours a week, the firm's annual EBIT will be $96,000. If he

Marcus owns and manages OLK, which is an all-equity firmIf he works 40 hours a week, the firm's annual EBIT will be $96,000. If he increases his hours to 45 a week, EBIT will increase to $108,000. The firm has a current value of $926,000. Marcus needs $250,000 to fund a new project. The firm can borrow the needed funds at an interest rate of 6 percent, or it can issue equity. Ignore taxes. Marcus will prefer

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