Compute the marginal cost of capital for amounts

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Question: Max Corporation can raise up to $2200 million for investment from a mixture of debt, preferred stock and retained equity. Above $2200 million, the firm must issue new common stock. Assuming that debt costs and preferred stock costs remain unchanged, the marginal cost of capital for amounts up to $2200 million will be ____ the marginal cost of capital for amounts over $2200 million.

Reference no: EM131794240

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