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The firm raises funds in increments of $2,900,000 consisting of $580,000 in debt and $2,320,000 in equity. This strategy maintains the capital structure of 20
The firm raises funds in increments of $2,900,000 consisting of $580,000 in debt and $2,320,000 in equity. This strategy maintains the capital structure of 20 percent debt and 80 percent equity. Develop the marginal cost of capital schedule through $14,000,000. Round your answers for the break-points to the nearest dollar and for the marginal costs to one decimal place.
The marginal cost of capital schedule:
$0 - ? | |
cost of debt: ? % | |
cost of equity: ? % | |
cost of capital: ? % |
$ ? - $ ? | |
cost of debt: ? % | |
cost of equity: ? % | |
cost of capital: ? % |
above ? | |
cost of debt: ? % | |
cost of equity: ? % | |
cost of capital: ? % |
Please solve for the answers with the question marks.
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