You are CFO of a large publicly traded company with a market cap of $15 and $500mm in outstanding bonds and other debt (at current market value). Your investment bankers suggest that you issue an additional $250mm in bonds to increase your leverage ratio, and pay the cash out as a special dividend to shareholders since you don't need the money. You do this and your stock price goes up 20%. However, your OLD debt declines 5% in market value. Now what percentage of your long term financing comes from debt? 36% 38% 67% 50% 28%