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The ACB Company currently has 1 0 0 . 0 0 0 . 0 0 0 common stocks outstanding. For a new investment, the Company

The ACB Company currently has 100.000.000 common stocks outstanding. For a new investment, the Company needs $ 60 million in new funds. The current EBIT is S 50.000.000 and is expected to increase by 30% if the firm increases its capital. Suppose that the corporate tax rate is 30%. There are 3 alternatives for the company:i. Issuing 50.000.000 new common stocks at $ 1 per share. ii. Issuing bonds at an 8% interest rate and ili. Issuing preferred stock at 15% dividend payment.Which alternative should the company choose and, what other factors should it consider?

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