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Q2. Assuming a 40 percent tax rate, what is the financial breakeven point for each plan? Table 1 Plan 1 Plan 2 Interest Paid $25,000
Q2. Assuming a 40 percent tax rate, what is the financial breakeven point for each plan?
Table 1
Plan 1 | Plan 2 | |
Interest Paid | $25,000 | $50,000 |
Preferred Divdend | $3,000 | $1,500 |
Common Shares Outstanding | 200,000 | 100,000 |
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