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Ting's 3-D printing business is expected to earn $50M next year Its dividend payout ratio is 30%. Its capital structure is 55% equity and 45%

  1. Ting's 3-D printing business is expected to earn $50M next year Its dividend payout ratio is 30%. Its capital structure is 55% equity and 45% debt. What is its breakpoint?
  2. What happens to the breakpoint if Ting's increases its leverage to 35% equity/ 65% debt? Explain.
  3. If its WACC is 9% before the breakpoint and 10% after, sketch the MCC (by hand is OK)?

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