QUESTION 13 firm raises capital in $1 million increments with $400,000 in debt and $600,000 in equity. The firm will earn $3 million and distribute 42 percent in dividends Also, if the firm issues more than $290,000 in debt, the cost of debt will rise. What are the breakpoints in the marginal cost of capital schedule for debt and equity? $1,200,000 for debt; 51,800,000 for equity A. $175,000 for debt; $2,900,000 for equity $125,000 for debt; $2,100,000 for equity $1,000,000 for debt; 2,900,000 for equity A $1,000,000 for debt: 52,100,000 for equity