THANK YOU!

Given the following information calculate the point in total funding where the firm will exhaust available retained earnings, bond yield: 7% tax rate: 38 available retained earnings: $4.500.000 cost of new common stock 13.9% cost of retained earnings: 11.4% capital structure 48% debt 7% preferred equity 45 common equity O $9.450,000 O $8.983.000 O $5.908.000 O $10,000,000 none of these QUESTION 37 A company will use 40% debt 15% preferred equity and 45% common equity for funding a $4.500.000 project. The firm has negotiated bank loan with a limit of 5500.000. At what level total funding will the bank loan be exhausted? O $1.25 million $1.40 million O 51.45 million none of these