The ABC Corporation has $300,000 of retained earnings available at a cost (kr) of 13%. If it exhausts retained earnings, it must use new common stock at a cost (kn) of 14%. Additionally, the firm expects it can raise up to $400,000 of long-term debt at a cost(1) of 56%, any futher use ofdett will be at a cost of 8.4%. The firm can issue an unlimited number of shares of preferred stock at a cost (kp) of 10.6%. The target capital structure is 40% LT debt, 50% common equity, and 10% preferred stock. ABC's breaking points for w calculation is: A) $600,000 B) $1,000,000 C) $700,000 D) Both A & B are correct E) None of the Above 600,000 1,000,000 O 700,000 O600,000&1,000,000 O None of the Answers