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D Question 15 3 pts Consider the following information for the Goodtime Company: Target Capital Structure Cost of each capital component 50% debt 18-8% 10%
D Question 15 3 pts Consider the following information for the Goodtime Company: Target Capital Structure Cost of each capital component 50% debt 18-8% 10% preferred = 15 40% common equity 1 - 10% Te 15% Marginal tax rate - 20% Net income = $10,000 and the dividend payout ratio - 40% The dollar amount of new capital at which Goodtime's cost of capital will increase is closest to: (Hint: calculate the breakpoint!) $13,000 $4.000 $6,000 $15.000
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