The ABC Corporation has reported earnings available to common stockholders of $4,200,000 last year. The following information applies to the company. Dividend (preferred stock) $2.00 # of outstanding shares 1,000,000 Market price of Common stock $40.00 Growth rate 6% Flotation on new common stock $7.00 Current Dividend (common stock) $1.26 Market price of Preferred stock $25.00 Flotation on Preferred stock $3.00 Par value (debt) $1,000 Coupon rate 10% term 5 years Current price of bond $1,200 flotation $25.00 per bond Tax rate 40% current Balance sheet for the firm indicates the following: $6,000,000 $1,500,000 $7,500,000 Long-term debt Preferred stock Common Equity Questions What is the breakpoint? What is the MCC, (after breakpoint)