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Firm ABC's market value of debt is $100,000 and market value of equity is $300,000. ABC's before tax cost of debt is 5.00% and the

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Firm ABC's market value of debt is $100,000 and market value of equity is $300,000. ABC's before tax cost of debt is 5.00% and the cost of equity is 15.00%. Assuming the tax rate is 40.00% and variable costs are 50.00% of Sales, and fixed costs are $50,000. Forecast the level of sales the firm must earn to sustain their market values. $45,000 $130,000 O $260,000 O $150,000

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