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Allison Engines Corporation has established a target capital structure of 50 percent debt and 50 percent common equity. The firm expects to earn $155,000 in

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Allison Engines Corporation has established a target capital structure of 50 percent debt and 50 percent common equity. The firm expects to earn $155,000 in after-tax income during the coming year, and it will retain 30 percent of those earnings. What is the break point of retained earnings? $200,000 $93,000 $115,000 $75,000

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