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Bob Companys target capital structure is as follows: Debt 30% Preferred Stock 10% Common Equity 60% Its component costs of capital are: 7.2% Cost of

Bob Companys target capital structure is as follows: Debt 30% Preferred Stock 10% Common Equity 60% Its component costs of capital are: 7.2% Cost of Debt, after-tax 9.5% Cost of New Preferred Stock 13.5% Cost of Retained Earnings 14.5% Cost of New Common Stock The company will retain $67,500,000 of earnings this year. Based on the above information, what is Bobs Retained Earnings Breakpoint?

$67,500,000

$112,500,000

$225,000,000

$475,500,000

$675,000,000

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