Use the Information for the Question(s)below

question 58

Multiple Choice

Use the information for the question(s) below.
You own your own firm and you need to raise $50 million to fund an expansion.Following the expansion,your firm will be worth $75 million in its unlevered form.You want to go ahead with the expansion,but you are concerned that you may not be able to maintain ownership of over 50% of your firm's equity.In other words,you are concerned that if you use equity to finance the expansion,you may lose control of your firm.
-Assume that capital markets are perfect,you issue $25 million in new debt,and you issue $25 million in new equity.Your ownership stake in the firm following these new issues of debt and equity is closest to:

• A)50%.
• B)55%.
• C)58%.
• D)33%.

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Definitions:

Abortion Rights

The rights of individuals to decide upon and access abortion services, often debated in terms of legal, moral, and health considerations.

Religious Institutions

Organizations dedicated to the practice and propagation of religious beliefs, including churches, mosques, temples, and synagogues.

Political Value

A fundamental belief or principle that influences political preferences and decision-making within a society or group.

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A person's specific viewpoint or position on political issues, which reflects their ideology, beliefs, and policy preferences.