What is the breakpoint where retained earnings are used up?

Select one:

a. $64,000

b. $32,000

c. $19,200

d. $38,400

Info 3:

Use for the next FOUR problems

Steelers Wheels, Inc. anticipates addition to retained earnings of $19,200 this year. The company can raise debt at a 10% interest rate. The next dividend is expected to be $1.00 and the stock is selling for $10.26 a share with expected growth rate in dividends of 5%. Flotation cost on new common stock is 10%. Steelers Wheels has a capital structure of 50% debt, 50% equity and a tax rate of 40%.