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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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