Your company has assets of $1 billion financed as follows: \$100 million 6% bonds $300 million 8% bonds \$200 million 10% Preferred Stock $400 million in Common Stock whose investors desire a 15% return Any additional capital in excess of the $1 billion secured would be generated by new common stock whose stockholders would seek a 20% return to compensate them for the company stretching itself so thin. Your firm is in the 25% tax bracket. Your firm has the following choices: How would you allocate your limited resources? What choices would you make? Would you seek additional financing beyond the $1 billion to take on additional projects? SHOW ALL YOUR WORK