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If a firm has a $500,000 debt limit before AT kd will change, taxes are 30% and total debt is 50% of the capital structure,
If a firm has a $500,000 debt limit before AT kd will change, taxes are 30% and total debt is 50% of the capital structure, calculate the debt break point in the MCC schedule.
a. | $2,500,000 | |
b. | $1,000,000 | |
c. | $300,000 | |
d. | $500,000 |
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