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Tropical Tour is considering an expansion of its operations, which will require the company to issue new debt and equity. Tropical's investment banker provided the

Tropical Tour is considering an expansion of its operations, which will require the company to issue new debt and equity. Tropical's investment banker provided the following information about the cost of issuing new debt.

Amoutnt of Debt Issued: Yield to Maturity

$1 - $450,000 4.5%

$450,001- $750,000 5.8%

Over $750,000 6.5%

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