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Cygan Corporation forecasts it will retain $1,750,000 of new earnings in the coming year. Common equity is 55% of the firm's target capital structure. The

Cygan Corporation forecasts it will retain $1,750,000 of new earnings in the coming year. Common equity is 55% of the firm's target capital structure. The associated break point in Cygan's cost of capital schedule is:

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A.$4,772,727.

B.$3,181,818.

C.$1,750,000.

D.$ 962,500.

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