A Firm Can Raise Up to $700 Million for Investment

A firm can raise up to $700 million for investment from a mixture of debt, preferred stock and retained equity.Above $700 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 $700 million will be the marginal cost of capital for amounts over $700 million.

A) less than
B) equal to
C) greater than
D) cannot be determined from the information given