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A corporation has $5,000,000 of 10 percent bonds and $3,000,000 of 12 percent preferred stock outstanding. The firm's financial breakeven (assuming 40 percent tax rate)
A corporation has $5,000,000 of 10 percent bonds and $3,000,000 of 12 percent preferred stock outstanding. The firm's financial breakeven (assuming 40 percent tax rate) is:
a) $860,000
b) $716,000
c)$1,400,000
d) $,.100,000
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