Question 3 1 pts A firm's retained earnings balance is $45 million. It has a planned capital budget of $90 million, and its target capital structure is 40% debt and 60% common equity (with no preferred stock). Which of the following statements concerning the firm's capital budget situation is TRUE? As it stands, the firm will not exceed its breakpoint for common equity. The firm will remain in its lowest possible WACC bracket, as its capital budget does not push beyond the breakpoint for common equity. The firm will have to issue new common equity in order to fund its capital budget. Unless the firm makes reductions to its capital budget, it will be remain in its lowest possible WACC bracket