suppose a new company decides to raise a total of $200 million, with $100 million as common equity and $100 million as long-term debt.

suppose a new company decides to raise a total of $200 million, with $100 million as common equity and $100 million as long-term debt. the debt can be mortgage bonds or debentures, but by an iron-clad provision in its charter, the company can never raise any additional debt beyond the original $100 million. Given these conditions, which of the following statements is correct?