Sand Key Development Company has a capital structure consisting of $20 million of 10% debt and $30 million of common equity. The firm has 500,000 shares of common stock outstanding. Sand Key is planning a major expansion and will need to raise $15 million. The firm must decide whether to finance the expansion with debt or equity. If equity financing is selected, common stock will be sold at $75 per share. If debt financing is chosen, 6% coupon bonds will be sold. The firm's marginal tax rate is 34%. Determine the level of operating income at which Sand Key would be indifferent between debt financing and equity financing.

Country a can produce product x, but it can also buy it at a cheap rate from country b. which of the following courses of action is suitable in this situation according to adam smith's theory of absolute advantage? question 35 options: 1) country a should import product x from country b and it should not attempt to produce it at home. 2) country a should partly import the product and produce it domestically. 3) country a should produce more of product x and should attempt to obtain an absolute advantage for the product. 4) country a should subsidize the production of product x to obtain an absolute advantage over country b.