Morgan Corporation Has 60% of Its Capital Structure in the Form

question 22

Multiple Choice

Morgan Corporation has 60% of its capital structure in the form of equity capital.$200,000 in capital needs to be raised for a project but only $50,000 in funds is available through retained earnings.How much must be raised through common stock to maintain Morgan Corporation's capital structure?

• A) $70,000
• B) $50,000
• C) $120,000
• D) $90,000

---

Definitions:

Points

An exact location in space, often represented in mathematics by coordinates.

Distance

The length between two points, often calculated using various formulas depending on the context, such as the distance formula in a coordinate plane.

Decimal Places

The number of digits to the right of the decimal point in a number.

Coordinates

A set of values that show an exact position on a graph, map, or in a space.