The Halifax Corporation Has 70% of Its Capital Structure in the Form

question 43

Multiple Choice

The Halifax Corporation has 70% of its capital structure in the form of equity capital.$150,000 in capital needs to be raised for a project but only $30,000 in funds is available through retained earnings.How much must be raised through common stock to maintain Halifax Corporation's capital structure?

• A) $105,000
• B) $75,000
• C) $120,000
• D) $21,000

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Definitions:

Igneous Rock

A type of rock formed through the cooling and solidification of magma or lava, with examples including granite and basalt.

Gabbro

A medium- to coarse-grained mafic igneous rock, the phaneritic equivalent of basalt.

Feldspar

Feldspar is a group of abundant rock-forming minerals that are major components of igneous, metamorphic, and sedimentary rocks, characterized by their silicate structure.

Quartz

A hard, crystalline mineral composed of silicon dioxide, widely distributed in many types of rocks and used in various industrial applications.