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The CEO of Harlem Hardware Supplies has submitted together a capital budget of $48,500,000 for the following years investment opportunities. He expects to have $19,000,000
The CEO of Harlem Hardware Supplies has submitted together a capital budget of $48,500,000 for the following years investment opportunities. He expects to have $19,000,000 in retained earnings at the end of the year. Harlems target capital structure calls for 45 percent equity. Based on these figures, will Harlem be able to meet their capital budget needs with retained earnings?
Use these data to calculate Harlem's retained earnings break point (REBP). Calculate the figure to the nearest dollar.
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