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

---

Definitions:

Lost Volume Seller

A seller who, despite making a sale to a new customer, still suffers a loss because they would have been able to make that sale in addition to the original sale that was canceled or breached.

Good Faith

The sincere intention to be fair, open, and honest, regardless of the outcome of an agreement or transaction.

Specific Performance

A court order compelling a party to execute a contract according to its precise terms when monetary compensation is inadequate.

Picasso Painting

An artwork created by Pablo Picasso, a Spanish painter and sculptor known for co-founding the Cubist movement.